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Nvidia agrees to buy Hugging Face in $12.9bn deal
The agreement values Hugging Face at about $12.9 billion, with Nvidia set to pay roughly $11.9 billion to investors and up to $1 billion in stock incentives to employees who join.
Nvidia has agreed to buy artificial intelligence developer platform Hugging Face in a deal valued at about $12.9 billion, one of the semiconductor company’s largest acquisitions as it pushes further into software.
Hugging Face, founded in 2016, is a platform where developers and researchers can find, share, and test AI models and tools. The companies said it is used by more than 18 million developers and hosts more than three million AI models, with more than 200,000 companies using the service.
Under the terms of the agreement, Nvidia would pay about $11.9 billion to Hugging Face investors and offer up to $1 billion in stock-based incentives to employees who join Nvidia. The deal would also keep Hugging Face open to developers, with users not required to use Nvidia chips or services.
The purchase would give Nvidia control of a major open-source AI ecosystem and bring one of the industry’s largest developer communities under its umbrella as demand for AI computing continues to reshape the chip market. Nvidia and Hugging Face already work together through the platform to help developers use Nvidia’s computing services.