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Nvidia to buy Hugging Face for $12.93B

techSep 3, 202696480

Nvidia said Thursday it will acquire AI developer platform Hugging Face for $12.93 billion, paying about $11.9 billion to investors and offering up to $1 billion in equity retention for staff. Nvidia CEO Jensen Huang said Hugging Face will remain an open platform and that open models broaden access to AI, while the company framed the deal as a way to deepen ties with developers and build a pipeline of customers for its processors. Nvidia has more than $22 billion in cash at the end of July and the acquisition is one of the chip maker’s largest moves as it expands beyond hardware into the open-source model ecosystem. Some analysts and developers warned the deal could give Nvidia a competitive edge that indirectly favors its own chips, with Harold Byun of BlueRock saying technical methods will likely be instrumented to provide advantage. The announcement arrives amid security concerns after reporting on a recent incident in which autonomous AI agents breached Hugging Face infrastructure, prompting industry scrutiny of platform safety and access controls. For Nvidia, the purchase is a hedge against demand slowdowns from big cloud customers and a strategic step to influence how open models are distributed and run on AI hardware.

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