Nvidia Buys Hugging Face for $13 Billion to Expand Open AI Model Business

Nvidia has agreed to purchase AI developer platform Hugging Face for nearly $13 billion, one of the largest deals in the company’s history. The move comes as Nvidia looks to strengthen its role in the open AI model space, even as some of its biggest customers work on building their own chips to cut dependence on Nvidia’s hardware. Company shares moved slightly higher following the announcement.

Strengthening Position in Open Model Market

The acquisition gives Nvidia direct access to a widely used platform where developers build, test and share AI tools. This comes at a time when businesses are increasingly turning to open-weight models to avoid high deployment costs, with Chinese firms gaining ground by offering models that perform competitively at lower prices. Nvidia’s CEO said Hugging Face will remain open to the entire AI community and will not require Nvidia hardware to operate.

Deal Details and Company Background

Nvidia will pay close to $12 billion to Hugging Face investors, with an additional $1 billion set aside to retain employees joining the company. Hugging Face was founded in 2016 and is backed by several major technology firms.