Nvidia has agreed to acquire Hugging Face, the widely used open-source AI model-sharing platform, for roughly $12.9 billion, according to The Information. The deal would value Hugging Face at over $13 billion — nearly triple the $4.5 billion valuation it commanded in 2023.
Talks reportedly began after Hugging Face drew acquisition interest from another suitor, and follow Nvidia's rejection of an earlier $500 million investment offer at a $7 billion valuation in late 2025. Hugging Face's annual revenue has grown to roughly $150 million, up from $100 million just two months earlier, and its CEO said in July the company was "close to profitability."
The move would let Nvidia both defend its chip dominance — as OpenAI, Google, Amazon and Anthropic build their own custom AI silicon — and re-enter the cloud business by reselling capacity through Hugging Face's infrastructure. No agreement has been signed yet, and the talks could still fall apart.