Technology
Nvidia Reportedly Set to Acquire AI Platform Hugging Face for 12.9 Billion dollar
Published On Thu, 27 Aug 2026
Ishita Menon
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Nvidia has reportedly agreed to acquire Hugging Face, the open-source AI platform, for $12.9 billion, according to The Information, which cited a person familiar with the deal. If completed, the acquisition would rank among Nvidia’s largest deals and underline the company’s confidence that demand for artificial intelligence is still growing. Hugging Face operates a major platform for open-source AI models, large language models and datasets, giving Nvidia access to a broad developer and research community.
The reported deal also comes at a time when AI companies such as OpenAI and Anthropic are working to develop their own chips as alternatives to Nvidia’s GPUs. Acquiring Hugging Face could therefore strengthen Nvidia’s position across both the hardware and software sides of the AI industry. The $12.9 billion price would represent a significant premium compared with Hugging Face’s reported annualised revenue of around $150 million. The company was valued at $4.5 billion in 2023 after raising $235 million in funding from investors including Nvidia, Salesforce and Google parent Alphabet.
Nvidia has continued to invest heavily across the AI sector, including backing companies such as OpenAI. The Financial Times reported in January that Hugging Face had previously rejected a $500 million investment offer from Nvidia that would have valued the company at around $7 billion. Neither Nvidia nor Hugging Face immediately responded to Reuters' requests for comment outside regular business hours.
The reported acquisition comes as Nvidia forecasts strong growth in its AI business. The company expects revenue to rise sharply next fiscal year and has said it has committed $18 billion toward equity investments through fiscal 2027. The development also follows a recent security incident involving Hugging Face infrastructure, adding another layer of attention around the platform as Nvidia reportedly moves toward acquiring it.
Disclaimer: This image is taken from Reuters.
