Nvidia Buys Hugging Face for $12.9 Billion Open-Source AI Push

Nvidia is expanding its open-source AI presence by acquiring Hugging Face for $12.9 billion, according to sources. The deal, expected to close in the first half of 2027 pending regulatory approval, marks a significant expansion into the rapidly growing open-source AI space.

Hugging Face has become a central platform and community for open-source AI, hosting millions of models and offering open libraries. Its chief executive officer, Clément Delangue, stated that the company had reached an inflection point and required more resources to continue scaling.

Nvidia's CEO, Jensen Huang, acknowledged that he initially wanted Hugging Face to remain independent but recognized its importance in the open-source AI space. He noted that Nvidia is committed to supporting open models and that they are essential for advancing AI quickly.