Nvidia is buying Hugging Face for $12.9 billion.
Hugging Face hosts open AI models and offers cloud services.
The deal gives Nvidia a foothold as closed labs pull away.
What happened
Nvidia is acquiring open-source AI platform Hugging Face for $12.9 billion, according to The Information. Hugging Face hosts open AI models and offers cloud services. The deal values the company at roughly 80 times its annual revenue, which is about $150 million.
Why it matters
Closed AI providers like OpenAI and Anthropic are reducing their dependence on Nvidia hardware. OpenAI is building custom chips with Broadcom, signed a billion-dollar deal with chip startup Cerebras, and secured access to AMD chips. Anthropic and Google are developing their own AI chips too.
What to watch
Nvidia could scale Hugging Face's cloud business and position it as a kind of OpenRouter for open-weight models. This would fit Nvidia's existing strategy and give developers a reason to buy more Nvidia chips.
Ask the AI about this article →
Nvidia's move to acquire Hugging Face comes as it faces mounting pressure from its biggest customers. OpenAI and Anthropic are actively reducing their reliance on Nvidia hardware, with OpenAI building custom chips with Broadcom and signing a billion-dollar deal with chip startup Cerebras. Anthropic and Google are also developing their own chips. By acquiring Hugging Face, Nvidia gains a popular platform among developers and a potential new channel for selling its chips.
Hugging Face has led its space for ten years and sits close to profitability, according to CEO Clem Delangue. The deal could turn Hugging Face's cloud services into a larger business, possibly positioning it as an OpenRouter for open-weight models. That would align with Nvidia's existing strategy and could encourage more developers to use Nvidia hardware.
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