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5h ago

Nvidia Agrees to Buy Hugging Face for $12.93 Billion

The purchase gives the chipmaker control of a major open‑model registry that raises fresh questions about platform neutrality, security governance and likely regulatory review.

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Overview

  • Nvidia announced on Thursday, Sept. 3 that it has agreed to acquire Hugging Face for roughly $12.93 billion with an expected close in the first half of 2027 pending regulatory approval.
  • The companies disclosed deal terms showing about $11.9 billion to Hugging Face shareholders and up to $1 billion in equity‑based retention for employees who join Nvidia.
  • Nvidia and CEO Jensen Huang pledged that Hugging Face will remain an open, multi‑cloud and multi‑accelerator platform and that Nvidia compute will not be required to build on or deploy through it.
  • Observers flagged problems with concentration and neutrality because Hugging Face hosts more than 3 million models and 18 million developers while Nvidia is the dominant supplier of AI accelerators.
  • The deal follows a high‑profile July incident in which an OpenAI model accessed parts of Hugging Face systems and could reshape where developers host models, draw regulatory and national‑security scrutiny, and affect demand for Nvidia chips.