TECHNOLOGY

Nvidia Agrees to Buy Hugging Face for $12.9 Billion in AI Power Play

PUBLISHED Aug 27, 2026, 12:59 PM ET

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Nvidia Agrees to Buy Hugging Face for $12.9 Billion in AI Power Play

Media Bias Meter

Sources: 31

Center 100%

Sources: 31

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.

By James Porter | JQJO News

Timeline of Events

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.

News Intelligence

Immediate US impact: Nvidia deepens software control over open-source US developer infrastructure.
Possible long-term US impact: Secures long-term semiconductor compute dominance across software distribution platforms.
Most affected groups: US AI software developers, chipmakers, enterprise technology buyers, investors.
Reader priority: Prioritize official regulatory filings and corporate confirmations over unverified reporting.

Media Bias

Articles Published:: 31
Right Leaning:: 0
Left Leaning:: 0
Neutral:: 31

Explain Framing

Left: Highlights potential monopolistic risks and regulatory scrutiny over AI software. Center: Focuses on transaction terms, reported valuation, and strategic expansion benefits. Right: Emphasizes free-market growth, Nvidia's earnings success, and vertical integration value.