Nvidia agrees to buy Hugging Face for $12.9BN, says report

Nvidia has reportedly agreed to purchase AI platform Hugging Face for $12.9 billion, according to a US tech publication. The Information, citing an unnamed source, revealed the acquisition, which has yet to be confirmed by either company. This deal would represent Nvidia's largest investment to date, as the company continues to allocate significant funds towards AI ecosystem stakeholders.

Hugging Face, founded by three French entrepreneurs, has been compared to GitHub in the AI space. The company provides a platform for developers to access AI models, tools for operating models, datasets for training AI models, and a community for collaboration on AI models. Hugging Face is based in New York. In 2023, Nvidia participated in a $235 million Series D funding round for Hugging Face, which valued the company at $4.5 billion.

Nvidia, the world's largest semiconductor company, has recently bolstered its investments in AI firms such as OpenAI, Anthropic, CoreWeave, and Nebius as it seeks to drive progress across the entire AI sector. The proposed deal aligns with Nvidia's recent financial performance, with the company reporting that second-quarter revenues surged more than double year-over-year to $96.2 billion, largely attributed to the growing adoption of AI agents.