Nvidia to Buy Hugging Face for $12.9 Billion, Gaining More Exposure to Open Model AI

The Nvidia logo is displayed on a building at Nvidia headquarters in Santa Clara, California. (Justin Sullivan/Getty Images)

Key Points

  • Nvidia agrees to buy the artificial-intelligence developer platform Hugging Face for $12.9 billion.
  • Hugging Face serves as a marketplace for open-source and open-weight AI models, which are lower-cost alternatives to proprietary models.
  • The acquisition gives Nvidia more direct exposure to the open model boom as the chip maker spreads its bets across the AI ecosystem.

Nvidia has agreed to buy Hugging Face, the popular artificial-intelligence developer platform, for $12.9 billion, said Nvidia CEO Jensen Huang Thursday.

Hugging Face has become a go-to marketplace for open-source and open-weight AI models, which anyone can modify and run on their own computing infrastructure. Open models are increasingly serving as a lower-cost alternative to proprietary models from OpenAI and Anthropic.

The acquisition gives Nvidia more direct exposure to the open model boom as the chip maker continues spreading its influence throughout the AI ecosystem. Nvidia already has a family of open models called Nemotron, and it’s the largest contributor of open models and data to Hugging Face.

Nvidia stock rose 0.4% in premarket trading Thursday, recovering from a slight loss earlier in the session. The deal was widely expected after the Information first reported on the agreement last week.

Hugging Face has more than 18 million users, who have shared some 3 million models, Huang said. More than 200,000 companies use the platform. Private-markets research firm Sacra pegged Hugging Face’s annual recurring revenue at about $150 million.

Write to Nate Wolf at nate.wolf@barrons.com

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