SAN FRANCISCO, Calif. (Diya TV) — Nvidia plans to buy artificial intelligence platform Hugging Face for $12.9 billion, expanding its reach across the fast-growing AI industry. The deal connects Nvidia’s powerful chips and data center systems with Hugging Face’s large collection of open-source AI models.
The acquisition also puts Nvidia closer to a major debate over how companies should develop AI. Open-source models allow developers to download, change and improve AI systems. At the same time, critics warn that these models can create security risks.
Nvidia CEO Jensen Huang said the deal will help make AI more open and accessible around the world. He shared the comments in a blog post Thursday.
Nvidia has quickly become one of the biggest financial forces in the AI market. The company has used its large cash reserves to invest in AI startups and support companies that buy its chips.
Nvidia reported $197 billion in current assets and nearly $60 billion in profit during its latest quarter. Its revenue also more than doubled from a year earlier to $96.22 billion.
The company has made several major financial commitments as the AI race intensifies. Last month, Nvidia and six major investment firms announced plans to raise $500 billion in financing. The money will help Nvidia customers pay for computing power.
Nvidia also agreed to provide as much as $105 billion to support a major data center project. In addition, the chipmaker said it would back more data centers for other AI startups.
Meanwhile, Nvidia has invested nearly $50 billion in AI companies that develop advanced models. Chief Financial Officer Colette Kress described the spending as a major commitment. However, she said it remains a small part of the company’s expected free cash flow.
The Hugging Face purchase highlights Nvidia’s growing support for open-source AI. Hugging Face operates as a major online library for AI models, datasets and software. Developers can use many of its models at little or no cost.
The platform has grown rapidly as AI adoption has increased. In 2021, Hugging Face hosted about 13,590 open-source models. Today, the company hosts nearly 3 million models.
Hugging Face began in 2016 with a chatbot aimed at teenagers. Over time, it shifted its focus toward AI development. The company then became a major destination for developers who want to customize AI tools.
Hugging Face has raised more than $400 million from investors. The company reached a private valuation of $4.5 billion in 2023. CEO Clément Delangue said the companies signed the acquisition agreement Wednesday.
The deal could also give Nvidia greater insight into the wider AI ecosystem. Jeff Pollard, a vice president at research firm Forrester, said Hugging Face serves as a key place where developers exchange models, data and code.
However, the acquisition comes as policymakers debate the future of open-source AI. Some Trump administration officials have considered restrictions on certain open AI models, especially systems developed by Chinese companies.
Nvidia warned investors Thursday that government restrictions could hurt its Hugging Face deal. The company said it supports both open-source and closed AI models.
The acquisition also raises questions about Nvidia’s growing role in the AI economy. The company has entered several financing deals with AI startups, cloud providers and other technology firms.
Some critics describe these arrangements as circular. In some cases, AI startups receive major investments from technology companies and then use that money to buy chips, cloud services and other products from those same companies.
Despite those concerns, Nvidia continues to expand its influence. The Hugging Face acquisition could give the chipmaker a stronger position across the AI supply chain while increasing its role in the future of open-source technology.
