Nvidia Agrees to Acquire Hugging Face for 12.9 Billion Dollars
Reports emerged on August 27, 2026, that Nvidia has agreed to acquire Hugging Face, the open-source AI platform, for approximately 12.9 billion dollars. Neither company has officially confirmed the deal, but sources familiar with the matter say negotiations are complete.
Reports emerged on August 27, 2026, that Nvidia has agreed to acquire Hugging Face, the open-source AI platform often called the "GitHub of the AI industry," for approximately 12.9 billion dollars. Some reports put the figure above 13 billion dollars. Neither Nvidia nor Hugging Face has officially confirmed the transaction.
Hugging Face was founded in 2016 and has grown into a central hub for the open-source AI community. The platform hosts more than 3 million public models and 1 million datasets. Its annual revenue has reportedly surpassed 150 million dollars. The company was valued at 4.5 billion dollars in a 2023 funding round, making the reported acquisition price nearly triple that figure.
For Nvidia, the deal is a move to deepen its integration with AI developers and encourage the use of its hardware for open-source AI workloads. It also gives Nvidia a potential path into the cloud computing market by leveraging Hugging Face's infrastructure for hosting and running AI models.
The acquisition comes as major AI labs including Google, Amazon, and OpenAI develop their own proprietary chips, which threatens Nvidia's dominance in AI hardware. Owning Hugging Face would give Nvidia a software and model ecosystem to complement its chip business.
The deal has raised concerns about Hugging Face's neutrality. The platform has historically supported hardware and models from across the industry, including from Nvidia competitors like AMD and Intel. Observers worry that Nvidia's ownership could change that.
The acquisition is part of a broader wave of consolidation in the AI middleware layer, occurring alongside ongoing debates in Washington about regulating open-weight AI models.
