Nvidia to buy Hugging Face for $13 billion in bet on open AI models

# Nvidia to Acquire Hugging Face for $12.93 Billion in Major Open-Source AI Bet

Nvidia is set to acquire Hugging Face for approximately $12.93 billion, bringing one of the world’s most widely used AI developer platforms under the chipmaker’s ownership in a major push to strengthen its position in open-source artificial intelligence.

The deal confirms earlier reports that Nvidia was exploring a potential acquisition of the AI developer platform.

Nvidia CEO Jensen Huang said the transaction reflects the company’s belief that open AI models will play an increasingly important role in the development of artificial intelligence.

Huang said Hugging Face would continue operating as an open platform serving developers, researchers and institutions across the AI ecosystem.

The companies plan to expand Hugging Face’s platform and infrastructure while making AI tools more accessible to developers around the world.

Hugging Face co-founder and Chief Technology Officer Julien Chaumond said the platform would remain independently operated and neutral following the acquisition.

Chaumond described the AI industry as being at a critical turning point, arguing that open-source models could either lose ground to proprietary systems or become a foundation for the next stage of AI development.

He said Nvidia was viewed as the preferred partner because of Huang’s public support for open-source AI.

The acquisition would significantly expand Nvidia’s presence in the open-model ecosystem.

Hugging Face has become a major destination for developers looking to discover, share, test and collaborate on AI models and related software tools.

Its platform hosts a large collection of models and datasets used across research and commercial applications.

For Nvidia, gaining direct access to that ecosystem could provide valuable insight into how developers are building and deploying AI systems.

The deal could also help Nvidia strengthen its position as competition intensifies among AI hardware and software companies.

Many of Nvidia’s largest customers are developing their own chips to reduce their dependence on the company, increasing the importance of expanding into other parts of the AI technology stack.

Nvidia has already invested heavily in open AI models, including its Nemotron family of models.

The Hugging Face acquisition would take that involvement further by placing Nvidia directly behind one of the most prominent platforms supporting open AI development.

Demand for open-weight models has been increasing as businesses look for more affordable alternatives to expensive proprietary AI systems.

Chinese AI companies such as DeepSeek and Z.ai have also emerged as important competitors in the open-model space, adding pressure on U.S. companies to maintain leadership.

The acquisition follows a recent security incident involving Hugging Face.

The company’s CEO, Clement Delangue, attributed the incident to engineering mistakes and said an Nvidia version of a Chinese open model was used in addressing the attack.

Huang has argued that open-source AI can provide a defensive advantage because large communities of developers and security researchers can collaborate transparently to identify and address threats.

He believes the collective nature of open AI development can give defenders greater resources than individual attackers.

The transaction therefore represents more than an expansion of Nvidia’s software portfolio.

It signals a broader strategy in which the chipmaker seeks influence across the AI ecosystem, from computing hardware and models to the platforms developers use to build applications.

For Hugging Face, the acquisition provides access to Nvidia’s enormous resources while preserving its stated commitment to remaining an open and developer-focused platform.

If completed, the $12.93 billion transaction would become one of Nvidia’s most significant moves into the software and open-source AI ecosystem.