Nvidia is close to acquiring Hugging Face for $12.9 billion, according to a report from The Information that cited unnamed sources. The deal, which would value the company at over $13 billion, remains unsigned and could still fall through. Both Nvidia and Hugging Face declined to comment when contacted by TechCrunch.
Hugging Face, founded in 2016, operates a popular platform where developers share and download open-source AI models. The acquisition would strengthen Nvidia’s position in open-source AI as competitors like Anthropic and OpenAI push into proprietary systems. Nvidia has invested heavily in open-source models to maintain its dominance in AI chips, which face growing competition from custom chips built by major tech firms.
The deal would also revive Nvidia’s cloud computing efforts. Hugging Face already helps developers run AI models using rented computing power, offering Nvidia a ready-made platform to expand its DGX Cloud business without starting from scratch. Financially, the purchase could help Nvidia monetize unused cloud capacity by selling it to Hugging Face’s customers. Hugging Face’s revenue has grown from $100 million to $150 million annually, nearing profitability, but the $13 billion price tag represents a steep multiple for its size.
