Nvidia acquires open-source AI platform Hugging Face for $12.9bn
Nvidia announced on September 3, 2026, a definitive agreement to acquire open-source AI platform Hugging Face for $12.93 billion. The deal consists of approximately $11.9 billion in cash and up to $1 billion in equity retention for staff. The acquisition moves Nvidia into open-source software infrastructure and shifts the company beyond its primary role as a hardware provider. Hugging Face leadership describes the move as a turning point for open-source AI.
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- ✓ Nvidia announced the acquisition of Hugging Face on September 3, 2026.
- ✓ The total deal value is $12.93 billion.
- ✓ The payment structure includes approximately $11.9 billion in cash and up to $1 billion in equity retention for staff.
What changed
The acquisition is now a definitive agreement with a precise valuation of $12.93 billion and a disclosed cash-to-equity payment structure.
Live updates
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Nvidia enters definitive agreement to acquire Hugging Face for $12.93 billion
Nvidia announced on September 3, 2026, a definitive agreement to acquire open-source AI platform Hugging Face for $12.93 billion. The deal consists of approximately $11.9 billion in cash and up to $1 billion in equity retention for staff. The acquisition moves Nvidia into open-source software infrastructure and shifts the company beyond its primary role as a hardware provider. Hugging Face leadership describes the move as a turning point for open-source AI.
Why it matters
Nvidia previously dominated the AI sector as a chipmaker. By acquiring a major host for open-weight models, the company implements a structural shift known as the compute landlord thesis. The deal follows several weeks of discussions initiated by Hugging Face.
What is confirmed
- Nvidia announced the acquisition of Hugging Face on September 3, 2026.
- The total deal value is $12.93 billion.
- The payment structure includes approximately $11.9 billion in cash and up to $1 billion in equity retention for staff.
What to watch next
- Regulatory approval timelines for the merger
- Integration plans for Hugging Face staff and equity retention
- Impact on open-source AI model availability
confidence 100%Sources used for this update (6)
- finance.yahoo.com — NVIDIA’s $12.93B Hugging Face Acquisition Becomes Definitive
- finance.yahoo.com — 'The planets aligned': Nvidia confirms $12.9bn Hugging Face deal in potentially huge AI shake-up
- www.silicon.co.uk — Nvidia To Buy Hugging Face For $12.9bn
- uk.finance.yahoo.com — Jim Cramer Discusses NVIDIA (NVDA) Acquiring Hugging Face
- www.gamesindustry.biz — Don't Nod warns it may not have enough funding to operate beyond January 2027
- www.gamesindustry.biz — Niko Partners: Chinese games market surpasses $50bn for the first time in 2025
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Nvidia acquires open-source AI platform Hugging Face
Nvidia is acquiring Hugging Face, a host for open-weight AI models, in a deal valued at approximately $12.9 billion to $13 billion. The Hugging Face CEO told CNBC that the platform approached Nvidia CEO Jensen Huang regarding the acquisition several weeks ago. The deal is viewed by some analysts as strategically valuable and a defensive move that extends Nvidia's influence beyond hardware. Following the announcement, Hugging Face founders are each worth $1.8 billion, and Jensen Huang's net worth is approaching $200 billion.
Why it matters
Hugging Face serves as a central repository for open-source AI models, making it a critical piece of infrastructure for AI developers. This acquisition occurs as other industry players consolidate, such as Stripe's acquisition of OpenRouter. The move potentially shifts the competitive balance against closed-model developers like OpenAI and Anthropic.
What is confirmed
- Nvidia is acquiring the open-weight AI platform Hugging Face.
- The acquisition price is reported as $12.9 billion or $13 billion.
- Hugging Face CEO told CNBC that the company approached Jensen Huang about the deal weeks ago.
- Hugging Face founders are each worth $1.8 billion following the deal.
Still unconfirmed
- Betaworks benefited financially from the Hugging Face deal.
What to watch next
- Official regulatory approval of the merger
- Integration plans for Hugging Face into Nvidia's hardware ecosystem
- Reaction from the open-source AI builder community
confidence 95%Sources used for this update (13)
- CNBC — Hugging Face approached Nvidia's Huang about an acquisition weeks ago, CEO tells CNBC
- Yahoo Finance — Nvidia confirms $13 billion acquisition of open-weight AI platform Hugging Face
- Bloomberg.com — Hugging Face Founders Each Worth $1.8 Billion After Nvidia Deal
- Yahoo Finance — Why this veteran tech CEO is impressed by Nvidia's Jensen Huang buying Hugging Face for $12.9 billion
- GamesIndustry.biz — Nvidia acquires open-source AI platform Hugging Face for $12.9bn
- CNBC — Why Nvidia's 'defensive move' to acquire Hugging Face is about much more than chips
- forbes.com — Jensen Huang’s Net Worth Nears $200 Billion After Nvidia Says It Will Acquire Hugging Face
- Barron's — Nvidia Deal Is Good for Stock and Bad for Anthropic and OpenAI
- WSJ — Exclusive | Betaworks Scores With Hugging Face Deal
- finance.yahoo.com — NVDA Stock On Track To Hit Over 2-Month High – Analyst Calls $12.9B Hugging Face Deal ‘Strategically Valuable’
- Barron's — Here’s the Real Reason Nvidia Is Buying Hugging Face
- VentureBeat — Nvidia acquires Hugging Face after Stripe nabs OpenRouter: here's what open source AI builders should do
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