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

PUBLISHED Aug 27, 2026, 12:59 PM ET

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

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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.