Nvidia Negotiates $14 Billion Acquisition of Hugging Face

Nvidia Corp. is in advanced negotiations to acquire AI startup Hugging Face in a deal valued at approximately $14 billion. The proposed transaction consists of a $12.9 billion acquisition price and a $1 billion retention package for employees. While a final agreement has not been reached, the companies could finalize the deal as soon as this week.

The acquisition would give Nvidia control over a primary platform where developers share and showcase AI models. This move aligns with the strategy of CEO Jensen Huang to promote open-source models and diversify the company's customer base.

This potential deal follows a series of aggressive expansions by Nvidia, including a $20 billion purchase of chip startup Groq and a $6 billion licensing agreement with Poolside.