Nvidia acquires Hugging Face for $12.9 billion

Nvidia has announced the acquisition of Hugging Face, the leading open-source AI model and dataset platform, for approximately $12.93 billion. The deal consists of $11.9 billion in cash and up to $1 billion in equity-based compensation.

During the announcement, Nvidia AI software Vice President Justin Boitano addressed concerns regarding the neutrality of Hugging Face’s services. Boitano stated that Nvidia is committed to maintaining an open and neutral platform that works across various cloud service providers and hardware, noting that hardware neutrality aligns with Nvidia’s own interests.

Hugging Face CEO Clem Delangue emphasized that the acquisition will not change the openness of the ecosystem. He noted that the company’s work remains open-source, allowing users to access, optimize, and fork resources. Delangue also expressed intentions to reinvest resources into the European tech ecosystem, despite the company being acquired by a US-based giant.

Separately, Nvidia reported significant growth in its contractual obligations for supply and capacity, reaching $279 billion at the close of the second quarter of fiscal year 2027. This surge reflects massive demand for AI infrastructure, including a major agreement with AWS for millions of additional GPUs through 2028.