Nvidia Set to Acquire Hugging Face for Record-Breaking AI Deal

Nvidia has reportedly agreed to acquire Hugging Face, an open-source AI model hosting platform, for approximately $12.9 billion. This deal marks one of Nvidia's biggest acquisitions and comes just a month after Hugging Face was thrust into the spotlight due to a security breach.

The acquisition is valued at around $13 billion, according to Business Insider, which reported that both parties were close to a deal. This price represents a significant jump from Hugging Face's valuation of $4.5 billion in its Series D funding round in August 2023, in which Nvidia participated and invested $235 million.

Nvidia CEO Jensen Huang has been an advocate for open-source AI models, stating that they strengthen safety and cybersecurity, accelerate innovation and diffusion, and enable sovereignty. He also signed a letter with other companies, including Microsoft, Amazon, Meta, and Google, arguing in favor of open weights and their benefits to the industry.