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Nvidia has officially acquired the leading artificial intelligence software platform, Hugging Face, for approximately $13 billion (around €11.6 billion). The deal, which had been in negotiation for nearly a week, is now considered Nvidia's largest takeover in its history. Hugging Face serves as the central platform for the global developer community, enabling millions of researchers and programmers to exchange AI models, datasets, and software.

The purchase price is split between roughly $11.9 billion for the current shareholders and up to $1 billion in stock-based retention awards for employees who will join Nvidia. This has nearly tripled the startup's value within three years, with Hugging Face valued at $4.5 billion in the summer of 2023's last major financing round.

By Nvidia's estimates, the company generates around $150 million in annual revenue, resulting in a significant premium for the chip giant. However, Nvidia's primary focus is on gaining strategic access to the world's most important platform for AI software, rather than the current earnings.

The initiative for the sale came from Hugging Face itself. Its co-founder and CEO, Clément Delangue, reportedly sought contact with Nvidia CEO Jensen Huang in the summer to discuss the potential acquisition. As Hugging Face seeks to continue its growth, the platform requires significantly more computational power and financial resources. Nvidia had already held a smaller stake in the New York-based startup since 2023.

In the developer community, the planned takeover initially caused concern. Many feared that Nvidia could eventually tailor the platform to its own chips and disadvantage competitors like AMD. Nvidia CEO Huang now promises neutrality, stating that Hugging Face will remain open to all developers and hardware manufacturers. The acquisition still requires approval from antitrust authorities and is expected to be completed by 2027.