Nvidia Poised to Grab Hugging Face for $13B

Nvidia is reportedly close to acquiring artificial intelligence platform Hugging Face in a deal worth around $13 billion. The discussions between Nvidia and Hugging Face have been ongoing for weeks, with some reports suggesting that the deal has already been finalized.

The acquisition would give Nvidia a key asset as open-source AI model developers race to catch up with close-sourced versions from OpenAI and Anthropic. Executives at Nvidia believe that a wealth of open models will help uphold the company's dominance in the AI hardware space, countering closed-source AI developers who are trying to build competing AI server chips.

Nvidia has been on a buying spree in the last year, with high-profile deals including a $6 billion licensing agreement with startup Poolside and a $20 billion acquisition of tech and talent from inference chip startup Groq. The company's CEO, Jensen Huang, recently stated that AI has reached its inflection point and is now doing useful work.