Nvidia has agreed to acquire the artificial intelligence platform Hugging Face for $12.9 billion, The Information reported on Wednesday, citing a person with knowledge of the agreement. The report has not been confirmed by either company, and Business Insider has separately reported that talks remain ongoing at a valuation above $13 billion, with the two sides yet to reach a final agreement.
If completed, the deal would rank among the largest acquisitions in Nvidia's history and would strengthen the chipmaker's position in the global AI market at a moment of rapid growth across the sector.
A key developer platform
Hugging Face, based in New York, hosts open-source large language models and datasets used widely by AI developers to build, share and test tools. Neither Nvidia nor Hugging Face responded immediately to requests for comment outside regular business hours.
Nvidia was among the investors, alongside Salesforce and Alphabet's Google, that backed Hugging Face in a $235 million funding round in 2023, which valued the company at $4.5 billion. The Financial Times reported in January that Hugging Face had turned down a $500 million investment offer from Nvidia the previous year, at a valuation of $7 billion. The price now being discussed would represent a significant increase on that figure.
Strong revenue outlook
Nvidia forecast on Wednesday that its revenue would rise by 70% in the next financial year, citing continued demand for AI computing power. The company also said it had committed $18 billion to equity investments for the remainder of financial year 2027.
Source: CNA
