What does Hugging Face do?

Hugging Face is a platform hosting 3 million primarily open AI models, about 500,000 datasets, and 1 million AI applications. More than 200,000 companies use it to discover AI features.

How does Hugging Face make money?

Hugging Face earns money from premium subscriptions and enhanced services for corporate users.

Why did Hugging Face previously reject Nvidia's investment?

Hugging Face turned down a $500 million investment from Nvidia late last year in part to avoid having a single dominant investor.

Open-Source AIAI Business & IndustryArs Technica AISep 3, 2026Sep 4, 2026, 04:00 JST

Nvidia buys Hugging Face for $13 billion

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3 Key Points

What happened
Nvidia has agreed to buy Hugging Face for $13 billion. Hugging Face is a New York-based platform that hosts 3 million open AI models, about 500,000 datasets, and 1 million AI applications.
Why it matters
Nvidia pledged Hugging Face will remain an open platform, letting more than 18 million developers choose models, cloud providers, and chips. The deal could also ease Nvidia's reliance on a few customers like OpenAI and Anthropic by creating new demand for its chips through open-weight models.
What to watch
The deal’s fate hinges on regulatory review, which Nvidia says it expects to pass, though the outcome remains undecided until approval is granted. Watch for the $500 million.

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Context & Analysis

Nvidia's acquisition of Hugging Face for $13 billion marks a major step in its strategy to back open AI models. The company's CEO, Jensen Huang, has already supported groups developing open models, such as Reflection AI, and infrastructure providers like CoreWeave and Nebius. This deal aligns with that push and could reduce Nvidia's dependence on a few large customers like OpenAI and Anthropic, which are also developing their own AI processors.

The purchase also comes amid a US political debate over whether to sanction Chinese developers of open AI systems over alleged technology theft. Nvidia has recently advocated for open models, with Huang signing a letter in July calling for US support. The acquisition may be seen as an effort to strengthen the open ecosystem while navigating regulatory scrutiny, though Nvidia expects the deal to be viewed positively.

FAQ

What does Hugging Face do?: Hugging Face is a platform hosting 3 million primarily open AI models, about 500,000 datasets, and 1 million AI applications. More than 200,000 companies use it to discover AI features.
How does Hugging Face make money?: Hugging Face earns money from premium subscriptions and enhanced services for corporate users.
Why did Hugging Face previously reject Nvidia's investment?: Hugging Face turned down a $500 million investment from Nvidia late last year in part to avoid having a single dominant investor.

Ars Technica AIRead Original Article

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Also reported by Fortune AI, ITmedia AI＋, THE DECODER, The Robot Report

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