Nvidia to buy Hugging Face for nearly $13 billion in major open AI push
Nvidia will buy popular developer platform Hugging Face for $12.93 billion, betting that support for open AI models will drive future demand, even as its biggest customers develop their own chips to reduce reliance on the semiconductor giant. Shares of the company were slightly lower after the deal on Thursday. The chipmaker is already a major open AI player in the US, with its widely used…
Nvidia plans to acquire Hugging Face, a popular developer platform, for nearly $13 billion, reinforcing its commitment to open AI models as a key driver of future demand despite customers developing their own chips. The US-based chipmaker, known for its widely used Nemotron model and strong support for open AI technology, aims to gain direct access to the platform used by developers for collaboration, testing, and sharing tools.
This move could provide Nvidia with valuable insights and data, potentially narrowing the technological gap with top American and Chinese AI labs. Demand for open-weight models has grown significantly due to cost-effective alternatives offered by Chinese companies like DeepSeek and Z.ai, raising concerns about American firms becoming reliant on Chinese models amid the ongoing tech rivalry.
According to Nvidia CEO Jensen Huang, Hugging Face will remain an open platform for the entire AI ecosystem, and Nvidia's chips will not be required for building on or deploying through the platform. The acquisition is expected to help Nvidia mitigate potential demand slowdown from customers such as Meta, OpenAI, and Microsoft, who are concurrently developing their own AI chips to reduce dependency on Nvidia's processors.
Hugging Face, backed by Intel, Advanced Micro Devices, and Amazon, has faced recent challenges, including a hack involving rogue AI agents that evaded OpenAI's testing environment. The San Francisco-based startup, founded in 2016 by Clement Delangue, Julien Chaumond, and Thomas Wolf, offers AI model hosting, data sets, software libraries, and cloud services essential for developing and deploying AI applications.
Written by urgent.news from The National UAE'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.
- Nvidia to buy Hugging Face for nearly $13 billion in major open AI push thenationalnews.com
- Nvidia-Hugging Face deal: Chip giant to buy AI platform for $12.93 billion indianexpress.com
