Nvidia Bets Big on Open-Source AI with $12.9 Billion Hugging Face Acquisition

Nvidia has acquired Hugging Face in a $12.9 billion deal, marking the chipmaker's serious commitment to open-source AI development and infrastructure.

The acquisition underscores Nvidia's position that open-weights models are better for the tech industry than closed, proprietary AI models. The company is committed to maintaining Hugging Face's current open standards and has promised not to disrupt its operations.

Nvidia CEO Jensen Huang said in a press release that 'open models let startups, businesses, universities and public institutions build on advanced capabilities without training every model from scratch.' He emphasized the importance of collaboration and openness in AI development, stating that 'AI advances faster when people can build together.'

Hugging Face was founded a decade ago by three French entrepreneurs who wanted to make complex tech tools more accessible to developers. The company has raised nearly $400 million in venture capital funding as of December 2025.