Nvidia has reached an agreement to acquire the artificial intelligence platform Hugging Face for approximately US$12.9 billion, according to a report citing a source familiar with the deal. The transaction, if completed, would rank among Nvidia’s largest acquisitions to date.
Hugging Face is known for hosting a repository of open-source AI models and datasets, including large language models. The acquisition signals Nvidia’s continued confidence in the expanding demand for AI technologies amid increasing competition in the sector. Notably, other AI developers such as Anthropic and OpenAI are investing in designing their own specialized chips to reduce dependence on Nvidia’s graphics processing units (GPUs).
The reported purchase price contrasts sharply with Hugging Face’s recent annualized revenue, estimated at around US$150 million. This deal also reflects Nvidia’s broader strategy to strengthen its position within the AI ecosystem, where it has invested billions of dollars and supported various AI firms, including OpenAI.
Prior to this agreement, Nvidia participated in a US$235 million funding round for Hugging Face in 2023, which valued the company at US$4.5 billion. Financial media reported earlier this year that Hugging Face declined a US$500 million investment proposal from Nvidia in 2025 that would have set the platform’s valuation at US$7 billion.
Nvidia’s leadership has expressed strong optimism about AI market growth, forecasting a 70 percent increase in revenue for the upcoming fiscal year. The company has also disclosed commitments totaling US$18 billion in equity investments through fiscal 2027.
The announcement arrives shortly after Hugging Face experienced a security breach triggered by a compromised OpenAI model, which affected the AI platform’s infrastructure. Neither Nvidia nor Hugging Face immediately responded to requests for comment.