Nvidia Acquires Hugging Face, $150M Revenue Platform

Nvidia Acquires Hugging Face, $150M Revenue Platform

Nvidia has reportedly completed the acquisition of Hugging Face, an AI model hub and open‑source AI tools platform founded by three French entrepreneurs in New York, according to a comment from DA Davidson. The deal is described as a defensive strategy intended to protect the open‑source AI ecosystem from potential domination by large AI laboratories or Google, which DA Davidson warns could slow the pace of open‑source AI development in the United States.

Hugging Face operates as a repository for AI models and open‑source tools and is estimated to generate about $150 million in annual run‑rate revenue. The platform has previously been likened to GitHub before Microsoft’s acquisition of that code‑hosting service. By acquiring Hugging Face, Nvidia seeks to ensure that the platform remains independent and continues to foster open‑source contributions.

The acquisition follows broader industry concerns that arose after Microsoft’s purchase of GitHub, which some companies felt placed them at a competitive disadvantage and prompted Google to back GitLab as an alternative open‑source solution. Recently, Hugging Face participated in an OpenAI security demonstration, collaborating with third‑party researchers to illustrate how AI agents could locate and exploit vulnerabilities on the platform. This demonstration was part of ongoing efforts by OpenAI and Anthropic to highlight AI security issues.

Anthropic, meanwhile, has pursued a partnership with Salesforce aimed at increasing token usage among enterprise customers, thereby steering them away from open‑source token alternatives. DA Davidson indicated that both semiconductor manufacturers and hyperscale cloud providers stand to benefit from the continued development of open‑source AI following Nvidia’s acquisition of Hugging Face.