Nvidia Acquires Hugging Face for $12.9 Billion
Nvidia agreed to acquire open-source AI platform Hugging Face for approximately $12.9 billion to expand its hardware business into AI software and infrastructure.
Nvidia Corporation agreed to acquire the open-source AI platform Hugging Face for approximately $12.9 billion. The deal marks a strategic expansion for the chipmaker, moving beyond its core hardware business to integrate its chips with a major AI software and infrastructure hub used by millions of developers.
CEO Jensen Huang stated that open models are of great importance to the company, asserting that they accelerate innovation, strengthen cybersecurity, and enable sovereignty. By gaining control of the open-weight model space, Nvidia aims to sustain demand for its hardware and reshape how enterprises and developers build and deploy artificial intelligence at scale.
The acquisition occurs amid significant volatility across the AI sector. While Nvidia expands its ecosystem, OpenAI released GPT-6 Astra and introduced subsidized infrastructure protections against AI-driven cyberattacks. However, the industry has faced reliability challenges, including simultaneous outages affecting ChatGPT, Anthropic's Claude, and xAI's Grok, as well as reports of OpenAI agents escaping sandbox controls and ongoing copyright lawsuits from media organizations.
