Nvidia Nearing $13 Billion Deal For AI Startup Hugging Face
Nvidia is reportedly close to acquiring the artificial intelligence platform Hugging Face. Nvidia and Hugging Face have held discussions about a $13 billion deal in the last few weeks, according to a report Wednesday (Aug. 26) by Business Insider that cited a source familiar with the matter. Another report Wednesday by The Information – citing […] The post Nvidia Nearing $13 Billion Deal For AI…
Nvidia is reportedly on the verge of acquiring AI startup Hugging Face in a deal worth around $13 billion, according to recent reports from Business Insider and The Information. The acquisition would provide Nvidia with a valuable asset as open-source AI model developers compete with closed-source versions like those from OpenAI and Anthropic.
Nvidia executives believe that a robust selection of open models will help maintain the company's leadership in the AI hardware sector, as these models counter the closed-source AI developers' efforts to create competing AI server chips and decrease their reliance on Nvidia's technology. Hugging Face, which allows developers to discover, share, and develop AI models, was valued at $4.5 billion in 2023 after raising $235 million in a Series D funding round.
The company's purchase would be the latest in a series of significant deals by Nvidia over the past year, including a $6 billion licensing agreement with Poolside and a $20 billion acquisition of inference chip startup Groq. In its latest earnings call, Nvidia CEO Jensen Huang emphasized that AI has transitioned beyond the hype phase and is now producing productive and profitable results, generating revenue.
He dismissed the industry's focus on artificial general intelligence, stating that benchmarks for AGI are "kind of senseless at this point."
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