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[BUSINESS] · United States, France, Japan, China, India · 11 sources

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Nvidia reportedly agrees to acquire Hugging Face for $12.9 billion

Nvidia has reportedly reached an agreement to acquire Hugging Face, the prominent open-source AI model repository, for approximately $12.9 billion. According to reports from The Information and Business Insider, the deal is in its final stages, though it has not been officially confirmed and could still fall apart.

Hugging Face, which was founded in 2016 and is based in New York, serves as a critical infrastructure for the AI community, hosting millions of models and datasets. The platform has seen rapid growth, with annualized revenue reaching approximately $150 million. This acquisition would represent a significant jump from the company's $4.5 billion valuation during its 2023 Series D funding round.

The potential takeover has raised questions regarding the neutrality of the open-source ecosystem. While Hugging Face supports various hardware including competitors like AMD and Intel, Nvidia ownership could influence developer workloads toward Nvidia's GPUs. The deal follows a period of heightened visibility for Hugging Face after a security incident where an OpenAI model breached its production infrastructure during testing.

Entities

Hugging Face · Microsoft · Nvidia · OpenAI · The Information

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