Nvidia has reportedly agreed to acquire Hugging Face for $12.9 billion, although a separate report said the talks had not produced a signed agreement and could still fall apart.
The potential deal would give Nvidia control of one of the leading platforms for sharing and downloading open-source AI models. Founded in 2016, Hugging Face also helps developers run models using rented computing power, giving Nvidia a possible route back into cloud computing after scaling back its DGX Cloud business.
The acquisition could also strengthen Nvidia’s position as major AI companies develop their own chips and open-source models gain traction. The company has already invested heavily in open-source AI, according to the report.
Hugging Face was last valued at $4.5 billion after raising $235 million in 2023 from investors including Salesforce Ventures, GV, IBM Ventures and Nvidia. The company reportedly turned down a $500 million Nvidia investment late last year at a $7 billion valuation.
The reported price would represent a significant jump in valuation. Hugging Face was recently generating about $150 million in annual revenue, up from roughly $100 million two months earlier, and its CEO said last month that the company was close to profitability.
Neither Nvidia nor Hugging Face has commented on the reports.
Source: TechCrunch
