Nvidia is reportedly set to buy Hugging Face for $12.9 billion, according to The Information, which cited a person familiar with the matter, a deal that would be among the chipmaker's biggest bets yet on AI infrastructure.
The reported acquisition would expand Nvidia's presence in the open-source AI ecosystem as the chipmaker continues to invest heavily across the artificial intelligence stack.
However, the deal is yet to be publicly confirmed by both companies - Nvidia and New York-based Hugging Face, which hosts open-source large language models and datasets.
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Nvidia's Hugging Face Connection
This wouldn't be Nvidia's first brush with Hugging Face. The chipmaker was part of a $235 million funding round in 2023, alongside Google, Amazon, Salesforce and Intel that valued the AI platform at $4.5 billion. A year before that, Hugging Face had reportedly turned down a $500 million investment from Nvidia that would have valued it at $7 billion, per the Financial Times.
The reported $12.9 billion acquisition would mark a substantial increase from that valuation. The development also follows an earlier investment proposal from Nvidia, when Hugging Face had rejected a $500 million investment offer that would have valued the company at $7 billion.
Hugging Face has emerged as a key platform for developers and researchers working with open-source AI models and datasets. An acquisition would give Nvidia a stronger foothold among the developers building and deploying AI applications.
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Nvidia's AI Growth Outlook
The reported deal comes as Nvidia continues to signal strong demand for AI computing. The company anticipated its third-quarter revenue to be around $108 billion, compared with the $104.19 billion average analyst estimate, according to LSEG data cited by Reuters.
Nvidia also expects revenue to grow by about 70% in FY28, reflecting the company's confidence in continued AI infrastructure spending. Its data centre revenue more than doubled to $89 billion in the latest quarter.
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