Nvidia bets $13 billion on open AI models with Hugging Face deal

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1. 40m ago

   Nvidia Completes $13 Billion Acquisition of Hugging Face

   Nvidia has finalized a $12.93 billion acquisition of Hugging Face, securing control of the prominent open-source AI repository. The deal grants Nvidia ownership of the platform utilized by 18 million developers to build and distribute AI models, which previously generated over $150 million in annualized revenue. While Nvidia promises to keep the library open, market analysts question whether the developer community will remain on the platform following the buyout.

   Why it matters

   This acquisition represents a major structural push by Nvidia into software infrastructure and open-source developer workflows, expanding well beyond its core hardware dominance. Nvidia previously scaled another major acquisition into a $31 billion business line. Observers note the deal positions Nvidia to directly influence how artificial intelligence gets built and deployed.

   What is confirmed

   • Nvidia acquired Hugging Face for $12.93 billion.
   • Hugging Face operates as a repository for open-source AI models with 18 million developers.

   Still unconfirmed

   • Nvidia's previous major acquisition anchors a $31 billion business line.

   What to watch next

   • Whether the 18 million developers continue using Hugging Face under Nvidia ownership
   • Any structural or policy changes implemented by Nvidia on the open-source platform
   Sources used for this update (7)

   1. www.ibtimes.com.au — Ukraine Weighs Legalizing Pornography To Fund 30,000 War Drones, Curb Police Corruption Amid Fiscal Strain
   2. finance.yahoo.com — History Says What Nvidia's Last Big Acquisition Became. Hugging Face Will Cost Nearly Twice as Much.
   3. www.martincid.com — Nvidia paid $13 billion for Hugging Face — and promised not to close the library
   4. finance.yahoo.com — Jim Cramer Discusses NVIDIA (NVDA) Acquiring Hugging Face
   5. www.aol.com — Nvidia’s $12.9 Billion Hugging Face Bet Comes With One Huge Risk
   6. observer.com — Nvidia Didn’t Buy Hugging Face for the Models
   7. www.marketscreener.com — Intel Shares Jump Premarket After Report on Price Hikes
   confidence 95%
2. 2d ago

   Nvidia Extends AI Dominance with Hugging Face Deal and New Investments

   Nvidia has confirmed its acquisition of open-weight AI platform Hugging Face for approximately $13 billion, marking a major expansion beyond hardware into developer platforms. The transaction follows years of independent growth by Hugging Face, which accumulated 18 million developers and $150 million in annualized revenue before accepting the buyout offer. Meanwhile, Nvidia is separately discussing a $2.5 billion investment in Thinking Machines Lab, a startup founded by former OpenAI CTO Mira Murati that is seeking up to $6 billion in new funding at a pre-money valuation of at least $40 billion.

   Why it matters

   The Hugging Face buyout and ongoing talks with Thinking Machines Lab demonstrate how dominant hardware makers are absorbing foundational AI infrastructure instead of relying on traditional public offerings. By securing key software hubs and developer town squares, the chipmaker is positioning itself as an ecosystem architect against competitive pressures like Broadcom's custom silicon. These moves reshape venture exit strategies by replacing public listings with massive corporate acquisitions.

   What is confirmed

   • Nvidia confirmed a deal to acquire AI model distribution platform Hugging Face for $12.9 billion.
   • Hugging Face reached $150 million in annualized revenue and attracted 18 million developers prior to the buyout.
   • Thinking Machines Lab is in talks to raise between $5 billion and $6 billion at a pre-money valuation of at least $40 billion.

   Still unconfirmed

   • Existing backer Accel is reportedly in talks to lead the Thinking Machines Lab funding round.
   • Congressman John McGuire bought between $1,001 and $15,000 of Nvidia stock ahead of the Hugging Face announcement.

   What to watch next

   • Finalization of the Thinking Machines Lab funding round and confirmation of Nvidia's investment stake.
   • Regulatory scrutiny or approval milestones regarding the Hugging Face acquisition.
   Sources used for this update (7)

   1. finance.yahoo.com — Thinking Machines Lab Seeks $40B Valuation as Nvidia Extends Its Capital Allocator Role Into Model-Space
   2. augustafreepress.com — John McGuire bought NVIDIA stock before NVIDIA made a $12.9 billion AI deal
   3. arynews.tv — Google adds Gemini voice tools to Gmail, Docs, and Keep
   4. arynews.tv — WhatsApp tests new limit to let users pin up to four messages in chats
   5. www.insidermonkey.com — Nvidia’s Hugging Face Deal Is a Hedge against Broadcom’s Custom Silicon Threat
   6. www.newscase.com — Nvidia’s Masterstroke: Buying the Town Square Where AI’s Future Gets Built
   7. finance.yahoo.com — Nvidia's $12.9B Hugging Face deal shows why IPOs are now optional
   confidence 95%
3. 3d ago

   Nvidia acquires Hugging Face in $13 billion open-source AI bet

   Nvidia has confirmed the acquisition of open-weight AI platform Hugging Face for approximately $13 billion. The deal, valued by some sources at $12.93 billion, signals a strategic shift for CEO Jensen Huang to expand Nvidia's ecosystem beyond hardware into developer platforms and open-source models. Hugging Face CEO Clément Delangue stated that the startup approached Huang regarding the acquisition several weeks ago. The deal results in Hugging Face founders each becoming worth $1.8 billion and provides a significant financial windfall for investors, including Betaworks.

   Why it matters

   The move targets the next phase of AI competition where open models are expected to define the industry. Jensen Huang argues that open models accelerate innovation and enhance cybersecurity and sovereignty. This acquisition transforms Nvidia from a chip provider into a broader AI platform owner.

   What is confirmed

   • Nvidia is acquiring the open-weight AI platform Hugging Face.
   • The acquisition price is cited as $13 billion, $12.93 billion, or $12.9 billion across multiple sources.
   • Hugging Face CEO Clément Delangue told CNBC that the company approached Jensen Huang about the acquisition weeks ago.
   • Nvidia CEO Jensen Huang stated that open models strengthen cybersecurity, accelerate innovation and diffusion, and enable sovereignty.
   • The founders of Hugging Face are each worth $1.8 billion following the deal.

   Still unconfirmed

   • Nvidia will pay approximately $11.9 billion specifically to Hugging Face investors.
   • The acquisition serves as a form of insurance for Nvidia.

   What to watch next

   • Integration details of Hugging Face into Nvidia's existing AI software stack
   • Regulatory reviews of the acquisition by antitrust authorities
   • Changes to Hugging Face's open-source hosting policies under Nvidia ownership
   Sources used for this update (19)

   1. CNBC — Hugging Face approached Nvidia's Huang about an acquisition weeks ago, CEO tells CNBC
   2. The New York Times — Nvidia Extends A.I. Spending Spree With $12.9 Billion Deal for Hugging Face
   3. reuters.com — Nvidia to buy Hugging Face for $13 billion in big bet on open AI models
   4. Yahoo Finance — Nvidia confirms $13 billion acquisition of open-weight AI platform Hugging Face
   5. USA Today — Nvidia bets on open source models, acquiring AI startup HuggingFace
   6. Morningstar — Nvidia: Hugging Face Acquisition Both a Wise Offensive and Defensive Move
   7. Yahoo Finance — Nvidia’s $12.93 Billion Hugging Face Deal Expands Jensen Huang's AI Platform Beyond Chips
   8. Bloomberg.com — Hugging Face Founders Each Worth $1.8 Billion After Nvidia Deal
   9. WSJ — Exclusive | Betaworks Scores With Hugging Face Deal
   10. Yahoo Finance — NVIDIA (NVDA)’s Hugging Face Deal Tests the Next Phase of its AI Strategy
   11. Reuters — Breakingviews - COMMENTARY: Nvidia wraps itself in $12.9 bln of insurance
   12. WSJ — The ‘Deeply Nerdy’ Founders Behind Nvidia’s $13 Billion Bet on Hugging Face
   confidence 95%