Nvidia Weighs $13 Billion Hugging Face Deal as It Expands AI Investment Push
Updated
Updated · Business Insider · Aug 27
Nvidia Weighs $13 Billion Hugging Face Deal as It Expands AI Investment Push
3 articles · Updated · Business Insider · Aug 27
Summary
Acquisition talks in recent weeks have valued Hugging Face at more than $13 billion, though Nvidia and the AI platform have not reached an agreement and discussions could still collapse.
Hugging Face hosts millions of open-source AI models and datasets, and owning it could deepen Nvidia's ties to developers while steering more AI workloads onto its chips.
Nvidia has ample firepower for dealmaking, with $18 billion committed to equity investments for the rest of its fiscal year and $47.9 billion already held in private companies.
The talks build on an existing relationship: Nvidia joined Hugging Face's $235 million funding round in 2023 at a $4.5 billion valuation, and Hugging Face later rejected a $500 million Nvidia investment that would have valued it at $7 billion.
A takeover could test Hugging Face's neutrality in the open-source AI ecosystem because the platform also supports hardware and models from Nvidia rivals including AMD and Intel.