Nvidia buys the open-source AI hub Hugging Face for $12.9 billion

Nvidia has agreed to acquire Hugging Face for $12.9 billion, bringing one of the most widely used platforms for sharing AI models, data sets, and developer tools under the chipmaker’s control.

The transaction is Nvidia’s second-largest acquisition, after its $20 billion purchase of Groq assets last year. It also marks a major expansion beyond the graphics processors that have made Nvidia central to the generative AI boom.

Hugging Face CEO Clément Delangue says he approached Nvidia during the summer because the open-source AI sector needed greater resources, computing capacity, and visibility. Nvidia CEO Jensen Huang says Hugging Face will remain an open platform for the wider AI ecosystem.

More than a chip deal

Hugging Face operates a large online repository where developers, companies, researchers, and public institutions can access and publish AI models, training data, and software tools. The platform has become a key distribution channel for open-weight models, whose underlying parameters can be downloaded and adapted.

The acquisition gives Nvidia a stronger presence in the software layer of AI development. Nvidia already provides its own customizable AI model family, Nemotron, while its CUDA software remains a core, proprietary part of its computing platform.

Nvidia has increasingly promoted open-weight models as an alternative to systems offered only through closed commercial interfaces. Huang argues that broad collaboration around open models can also help cybersecurity defenders respond to threats faster.

The issue gained attention after a recent security incident involving Hugging Face. Delangue tells CNBC that engineering errors contributed to the breach and says the episode reinforced his view that the company should invest further in open-source AI.

For Hugging Face users, Nvidia’s commitment to preserve open standards will be closely watched. The deal places a major community platform inside the world’s most valuable AI infrastructure company, while raising questions about how independent it can remain in practice.

Sources

• Nvidia agrees to buy Hugging Face for $12.9B, its second-biggest purchase after it paid $20B for Groq assets at the end of last year – CNBC
• Nvidia’s Hugging Face Acquisition Is a $12.9 Billion Bet on Open-Source AI – WIRED