Nvidia Agrees to Buy Hugging Face for $12.9 Billion in AI Power Play
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Nvidia has agreed to acquire open-source artificial intelligence platform Hugging Face for approximately $12.9 billion, according to a report published Wednesday by The Information. Neither Nvidia nor New York-based Hugging Face immediately issued official public comments confirming the transaction. If finalized, the transaction would mark one of the largest acquisitions in Nvidia's history. Hugging Face serves as the primary repository for global developers to host, test, and collaborate on open-source AI models and datasets, generating an estimated $150 million in annualized revenue. The acquisition deal follows reports that Hugging Face evaluated multiple prospective bidders with investment bankers. The move reflects Nvidia’s strategy to expand beyond hardware manufacturing into AI software infrastructure. Concurrently, Nvidia reported second-quarter fiscal 2027 revenue of $96.2 billion, up 106% year-over-year, driven by $89.0 billion in Data Center revenue. Deeply integrating Hugging Face into Nvidia's CUDA software framework secures direct developer touchpoints across the global open-source AI ecosystem.
Timeline
- August 23, 2023 — Hugging Face raised $235 million, valuing firm $4.5 billion.
- December 15, 2025 — Hugging Face rejected Nvidia's $500 million investment proposal.
- July 15, 2026 — Hugging Face experienced infrastructure cybersecurity breach incident.
- August 18, 2026 — Hugging Face hired investment bankers to explore acquisition bids.
- August 26, 2026 — Nvidia reported $96.2 billion Q2 fiscal 2027 revenue.
- August 26, 2026 — Reports revealed $12.9 billion Hugging Face acquisition deal.
- August 27, 2026 — Analysts evaluated vertical integration impact on AI computing market.
- August 27, 2026 (10:00 PM PKT) — No newer material development was located during final search.
- October 1, 2026 — Nvidia scheduled quarterly shareholder dividend payout distribution date.
- November 15, 2026 — Regulatory bodies expected to begin preliminary antitrust deal review.
Sources
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