Nvidia to spend $13 billion on Hugging Face, which will remain an open source platform

Live updates

1. 2h ago

   Nvidia Confirms $13 Billion Acquisition of Hugging Face

   Nvidia CEO Jensen Huang confirmed a deal to acquire AI model distribution platform Hugging Face for $13 billion in a Thursday blog post. The acquisition will keep Hugging Face as an open platform, allowing Nvidia to expand further up the artificial intelligence stack. The transaction highlights how initial public offerings have become optional for venture-backed firms after Hugging Face drew 18 million developers and reached $150 million in annualized revenue. The move also counters growing competition as Broadcom gains ground with faster-growing custom AI chips and potentially pressures OpenAI.

   Why it matters

   Prior to accepting the chipmaker offer, Hugging Face raised nearly $395 million from investors including Amazon, Intel, Sequoia, and Coatue. The multi-billion-dollar transaction arrives amid a worldwide repricing spreading across debt markets driven by AI investment plans, energy shocks, and inflation. This purchase strengthens Nvidia's software moat as competition in the artificial intelligence hardware and software sector intensifies.

   What is confirmed

   • Nvidia CEO Jensen Huang confirmed the $13 billion acquisition in a Thursday blog post.
   • Nvidia will keep Hugging Face as an open platform.
   • Hugging Face previously reached $150 million in annualized revenue and drew 18 million developers.
   • Hugging Face raised nearly $395 million from investors including Amazon, Intel, Sequoia, and Coatue prior to the sale.

   Still unconfirmed

   • The Hugging Face acquisition could pressure OpenAI.
   • The deal could strengthen Nvidia's software moat as Broadcom gains ground with faster-growing custom AI chips.

   What to watch next

   • Regulatory approval and finalization of the $13 billion acquisition.
   • Evidence of how Nvidia integrates Hugging Face into its existing artificial intelligence stack.
   • Market responses from competitors such as Broadcom and OpenAI.
   Sources used for this update (5)

   1. yellow.com — Hugging Face $12.9B Acquisition Reveals Critical AI Chip Gap
   2. broadbandbreakfast.com — Nvidia Confirms it Will Spend $13 Billion on Hugging Face AI Software Platform
   3. asiatimes.com — All in a day’s reading, if you’re following innovation
   4. www.europesays.com — Global Bond Yields Surge as AI Spending and Inflation Keep Rates High | Ukraine news
   5. www.stl.news — Nvidia’s Hugging Face Deal Could Pressure OpenAI
   confidence 95%
2. 19h ago

   Nvidia Confirms $12.9 Billion Acquisition of Hugging Face

   Nvidia confirmed a deal to acquire the AI model distribution platform Hugging Face for $12.9 billion. The transaction demonstrates that initial public offerings are now optional for venture-backed firms. Hugging Face reached $150 million in annualized revenue, drew 18 million developers, and raised nearly $395 million from investors including Amazon, Intel, Sequoia, and Coatue before accepting the chipmaker offer. The acquisition allows Nvidia to move beyond hardware and expand further up the artificial intelligence stack.

   Why it matters

   Traditional technology firms have long viewed initial public offerings as the primary destination for venture-backed growth. However, massive corporate buyouts by dominant chipmakers are altering exit strategies for major software platforms. This multi-billion-dollar purchase also acts as a strategic hedge against custom silicon threats from competitors like Broadcom.

   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.
   • Hugging Face secured nearly $395 million from backers including Amazon, Intel, Sequoia, and Coatue.

   Still unconfirmed

   • The acquisition serves as a strategic hedge against Broadcom's custom silicon threat.

   What to watch next

   • Regulatory scrutiny or approvals concerning the $12.9 billion Nvidia acquisition of Hugging Face.
   • Further integration details regarding how Hugging Face open-source models will operate under Nvidia.
   Sources used for this update (6)

   1. www.chicagotribune.com — Tribune, New York Times want ‘fair use’ argument rejected in copyright case against OpenAI, Microsoft
   2. finance.yahoo.com — Nvidia's $12.9B Hugging Face deal shows why IPOs are now optional
   3. finance.yahoo.com — Nvidia’s Hugging Face Deal Is a Hedge against Broadcom’s Custom Silicon Threat
   4. kdhnews.com — One Tech Tip: How to avoid Celine Dion ticket scams as she makes her grand concert comeback
   5. kdhnews.com — US envoys Witkoff and Kushner arrive in Kyiv after talks with Putin in Moscow
   6. www.ibtimes.com.au — Ukraine Weighs Legalizing Pornography To Fund 30,000 War Drones, Curb Police Corruption Amid Fiscal Strain
   confidence 100%
3. 2d ago

   Nvidia acquires Hugging Face for $13 billion to expand open-source AI

   Nvidia has entered a definitive agreement to acquire the AI platform Hugging Face for approximately $13 billion. The chipmaker intends to maintain Hugging Face as an open-source platform for open-weight models to support developers and researchers. The acquisition follows a request from the Hugging Face CEO, who approached Nvidia CEO Jensen Huang several weeks ago. While the deal aims to boost the developer ecosystem, industry leaders including Microsoft AI CEO Mustafa Suleyman have raised concerns regarding AI security and potential hacking incidents.

   Why it matters

   Hugging Face serves as a central hub for the AI community to share models and datasets. By integrating this platform, Nvidia shifts from providing hardware to owning a primary software layer of the AI stack. This move signals a strategic bet on open-source development over proprietary models.

   What is confirmed

   • Nvidia is acquiring Hugging Face for $13 billion.
   • Hugging Face will remain an open-source platform.
   • The Hugging Face CEO approached Nvidia CEO Jensen Huang about the acquisition weeks ago.

   Still unconfirmed

   • The exact purchase price is $12.93 billion.
   • The exact purchase price is $12.9 billion.

   What to watch next

   • Regulatory approval of the acquisition
   • Details on how Nvidia will manage the open-source nature of the platform
   • Response from other major AI hardware and software providers
   Sources used for this update (11)

   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. abcnews.com — Nvidia to spend $13 billion on Hugging Face, leaving it as an open source platform
   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. The Economist — World in Brief: Nvidia buys Hugging Face; Iran warns against Israeli assault in Lebanon
   7. www.securityweek.com — Nvidia Is Buying AI Platform Hugging Face for $13 Billion
   8. finance.yahoo.com — Nvidia's $13 Billion Hugging Face Deal Expands Open-Source AI
   9. timesofindia.indiatimes.com — Microsoft AI CEO Mustafa Suleyman has a warning on AI company hacking that Nvidia just spent $13 billion on; says: Imagine the hugging face incident with ...
   10. cio.economictimes.indiatimes.com — Nvidia buys Hugging Face for $13 billion to boost open-source AI models and developer ecosystem
   11. finance.yahoo.com — How Nvidia's Purchase Of Hugging Face Will Shake Up Ad Industry
   confidence 95%