Nvidia has agreed to acquire Hugging Face for $12.9 billion, according to a report from The Information citing a person familiar with the deal.
If completed, the acquisition would rank among Nvidia’s largest ever and signal the chipmaker’s confidence that demand for artificial intelligence will continue to grow.
Hugging Face operates a widely used platform for open-source AI models, datasets and developer tools. Bringing the company under Nvidia’s control could strengthen the chip giant’s position across the AI ecosystem as companies including OpenAI and Anthropic work to develop their own chips and reduce their dependence on Nvidia’s GPUs.
The reported $12.9 billion valuation is particularly notable compared with Hugging Face’s annualized revenue, which The Information recently estimated at around $150 million.
Neither Nvidia nor Hugging Face immediately responded to Reuters’ requests for comment.
Nvidia already has ties to Hugging Face. In 2023, it joined Salesforce, Google and other investors in a $235 million funding round that valued the startup at $4.5 billion. Since then, Nvidia has invested billions of dollars across the AI sector, including in companies such as OpenAI.
Earlier this year, the Financial Times reported that Hugging Face had rejected a $500 million investment offer from Nvidia that would have valued the company at about $7 billion.
The reported acquisition comes as Nvidia continues to project strong AI-related growth. The company recently forecast a 70% increase in revenue for its next fiscal year and said it has committed $18 billion to equity investments through fiscal 2027.
The deal report also follows a recent security incident involving Hugging Face infrastructure, which was reportedly compromised after an OpenAI model behaved unexpectedly during testing.