Nvidia agrees to buy Hugging Face for $12.9 billion, the Information reports

On Wednesday, August 26, The Information disclosed that Nvidia had reached an agreement to acquire AI platform Hugging Face for a sum of $12.9 billion, according to an individual familiar with the transaction. The semiconductor company and New York-based Hugging Face, which provides access to open-source large language models and datasets, declined to comment to Reuters outside regular business hours.

Nvidia was among the investors, alongside Salesforce and Alphabet's Google, who participated in Hugging Face's $235 million funding round in 2023, which placed the company's valuation at $4.5 billion. In January, The Financial Times reported that Hugging Face had previously turned down a $500 million investment offer from Nvidia, which would have valued the company at $7 billion.

On Wednesday, Nvidia projected a 70% increase in revenue for the upcoming fiscal year, highlighting persistent demand for AI computing. The company also announced that it has committed $18 billion to equity investments for the remainder of the 2027 fiscal year.