Nvidia to Acquire Hugging Face for $12.9 Billion

Nvidia has agreed to buy Hugging Face for $12.9 billion, according to The Information and Business Insider.

The deal is significant because it marks Nvidia's second major acquisition this month, following its purchase of Meta's AI research lab earlier in the month.

Hugging Face is a platform that hosts open-source models used for training and testing artificial intelligence. It's like a public library where developers can check out models instead of books.

The company brings in around $150 million in revenue each year, which means Nvidia is paying approximately 86 times its annual revenue.

This deal raises concerns that Nvidia may no longer keep the platform hardware neutral, as analysts are split on whether the acquisition will be a positive or negative development for the industry.