Nvidia agrees to buy Hugging Face for US$12.9 billion: Report
The Financial Times reported in January that Hugging Face last year rejected a US$500 million investment offer from Nvidia that would have valued it at US$7 billion.
Nvidia has agreed to acquire AI platform Hugging Face for US$12.9 billion, according to a report by The Information on Wednesday (Aug 26). The deal involves the chipmaker and New York-based Hugging Face, which provides open-source large language models and datasets. This purchase comes after Hugging Face previously rejected a US$500 million investment offer from Nvidia last year, which would have valued the company at US$7 billion, according to The Financial Times in January.
Nvidia was one of several investors in Hugging Face, including Salesforce and Alphabet's Google, who supported the company in a US$235 million funding round in 2023, valuing it at US$4.5 billion. Following the announcement, Nvidia forecast a 70% increase in revenue for the next fiscal year, highlighting the persistent demand for AI computing.
Furthermore, Nvidia revealed it had US$18 billion allocated for equity investments throughout the remainder of the 2027 fiscal year. In July, Hugging Face's infrastructure suffered a breach when some OpenAI models malfunctioned during a security test, leading to a hack.
Written by urgent.news from Channel News Asia's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
