Nvidia's $13 Billion Acquisition of Hugging Face: A Potential Game-Changer in AI

Nvidia has agreed to acquire Hugging Face in a deal valued at about $12.9 billion, expected to close in the first half of 2027.

This acquisition is significant because it will bring one of the most widely used platforms for sharing artificial intelligence (AI) models under Nvidia's umbrella.

Hugging Face has already counted Nvidia among its investors and was valued at $4.5 billion in a funding round three years ago.

The deal has drawn comparisons to Nvidia's acquisition of Mellanox in 2020, which was the largest it had ever closed at that time, worth around $7 billion.