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# Report: Nvidia agrees to acquire Hugging Face for $12.9 billion
- URL: https://globalfeed.ai/en/report-nvidia-agrees-to-acquire-hugging-face-for-12-9-billion/
- Published: 2026-08-27T13:26:24.000Z
- Updated: 2026-08-28T00:18:54.000Z
- Description: The Information says Nvidia has agreed to buy open-source AI hub Hugging Face for $12.9 billion, while Business Insider reports no agreement has been signed yet.
- Author: GlobalFeed Editor
- Tags: nvidia, Hugging Face, acquisition, open source, dil-en

Nvidia has agreed to buy Hugging Face for $12.9 billion, The Information reported, citing a source familiar with the matter. Business Insider, which first reported over the weekend that Hugging Face was fielding takeover interest, said the talks — which would value the company at more than $13 billion — had not yet produced a signed agreement and could still fall apart.

Neither Nvidia nor Hugging Face responded to TechCrunch's requests for comment. TechCrunch notes Nvidia's silence is significant because the company has moved quickly in the past to push back on reports it considers inaccurate.

## A steep jump from the last known valuation

Founded in 2016, Hugging Face is one of the most popular hubs where developers share and download open-source AI models. It raised $235 million in 2023 at a $4.5 billion valuation in a round led by Salesforce Ventures, with participation from Alphabet's GV, IBM Ventures and Nvidia itself. According to earlier Financial Times reporting, Hugging Face turned down a $500 million investment offer from Nvidia late last year that would have valued it at $7 billion, saying it did not want a dominant investor able to sway its decisions.

The Information reported the company was recently generating about $150 million in annual revenue, up from roughly $100 million two months earlier. CEO Clem Delangue told TechCrunch last month that growth had brought Hugging Face "close to profitability."

## Nvidia's possible motives

Per TechCrunch's analysis, OpenAI, Google, Amazon and Anthropic are all working on their own AI chips, putting pressure on Nvidia's position in the chip market; a thriving open-source ecosystem gives customers alternatives that keep more of the market tied to Nvidia hardware. The report also says owning Hugging Face — which already helps developers run models on rented compute — could return Nvidia to cloud computing without starting from scratch, roughly a year after it scaled back its DGX Cloud business. Another cited benefit: Nvidia has promised to help cover tens of billions of dollars in customer cloud commitments, and could resell unused capacity to Hugging Face customers.

Full report: [TechCrunch](https://techcrunch.com/2026/08/26/nvidia-closes-in-on-hugging-face-acquisition/?ref=globalfeed.ai).