NVIDIA is reportedly in advanced talks to acquire AI startup Hugging Face in a deal valued at approximately $14 billion. Sources suggest an agreement could be reached as early as this week, with the acquisition price set at $12.9 billion, plus a $1 billion retention package for Hugging Face employees.
While no final agreement has been signed and terms remain subject to change, this potential acquisition marks NVIDIA’s most significant move to expand its AI reach and customer base. If finalized, it would grant NVIDIA control over a pivotal platform used by developers globally to showcase and share AI models.
Hugging Face: The “GitHub of AI”
Founded in 2016, Hugging Face has become a cornerstone of the AI community, often dubbed the “GitHub of AI.” The platform hosts over 3 million public models and more than 1 million datasets, fostering collaboration and innovation in artificial intelligence development. Its role as a central hub for AI resources makes it a highly strategic asset.
A Significant Valuation Jump
Hugging Face’s valuation has seen a substantial increase. In its last funding round in 2023, the company raised $235 million at a valuation of $4.5 billion, with Salesforce Ventures leading the round. The reported $12.9 billion acquisition price signifies nearly a threefold increase in the company’s valuation in just three years.
NVIDIA is already an existing investor in Hugging Face, alongside other major tech players like Alphabet (Google), Amazon, Intel, and Salesforce. This prior investment underscores NVIDIA’s long-standing belief in Hugging Face’s potential and strategic importance.
NVIDIA’s Acquisition Strategy
This move aligns with NVIDIA’s broader strategy of expanding its influence in the AI ecosystem through acquisitions. In recent years, NVIDIA has pursued several notable transactions. These include the acquisition of the core team of chip startup Groq for approximately $20 billion (expected completion in December 2025) and a $6 billion licensing agreement with startup Poolside (signed in August 2026).
These strategic moves aim to bolster NVIDIA’s hardware dominance with a stronger software and platform presence, catering to a wider array of AI applications and developers. The company recently projected robust growth, with expected revenue increases of approximately 70% for the fiscal year 2028, indicating strong momentum in the AI market.
NVIDIA’s potential acquisition of Hugging Face is a clear signal of the escalating importance of AI platforms and developer communities in the ongoing AI revolution.
Representatives from both NVIDIA and Hugging Face have declined to comment on the ongoing negotiations.
