Nvidia's Potential $14bn Acquisition of Hugging Face
Nvidia (NASDAQ:NVDA) is reported to be in advanced negotiations to acquire artificial‑intelligence startup Hugging Face, with Bloomberg News citing sources familiar with the matter. The transaction is expected to be valued at approximately $14 billion, although an agreement valued at $12.9 billion could be reached as early as this week. The proposed deal may also contain a $1 billion retention package intended for Hugging Face employees. No definitive agreement has been signed, and the terms or timing remain subject to change.
Hugging Face operates a platform that enables developers to share and access AI models, effectively serving as a central hub for open‑source AI development. The startup was last valued at $4.5 billion during its 2023 funding round. Nvidia has previously backed Hugging Face alongside other technology giants including Alphabet, Amazon, Intel and Salesforce.
If completed, the acquisition would represent the largest strategic move by Nvidia’s Chief Executive Jensen Huang to broaden the adoption of artificial intelligence and expand the company’s customer base. The deal would give Nvidia direct control over a key component of the open‑source AI ecosystem.