Nvidia nears US$14bil deal this week for startup Hugging Face

By the Editorial Team · Thursday, September 3, 2026

Nvidia is in advanced talks to acquire AI startup Hugging Face in a deal potentially valued at around $13 billion, which could be finalized as soon as this week. This acquisition would mark Nvidia CEO Jensen Huang’s largest effort to support open-source AI development and expand the company’s influence within the rapidly growing AI ecosystem.

Nvidia Corp is reportedly in advanced discussions to acquire artificial intelligence startup Hugging Face in a deal that could be valued at approximately US$14 billion. Sources familiar with the matter indicate that an agreement in the vicinity of US$12.9 billion might be finalized as early as this week, though details remain subject to change and no official confirmation has been made. Representatives for both Nvidia and Hugging Face declined to comment.

The proposed transaction could also include a US$1 billion retention package for Hugging Face employees, according to one source. Founded in 2016, Hugging Face operates a widely used platform where developers share and showcase open-source AI models, a critical aspect of the AI ecosystem. The startup was valued at around US$4.5 billion in a funding round three years ago.

Acquiring Hugging Face would represent Nvidia CEO Jensen Huang’s largest move to date in broadening the adoption of AI technologies and diversifying Nvidia’s customer base. The deal aligns with Huang’s commitment to supporting open-source AI models, which he views as vital to preventing a scenario where AI development is dominated exclusively by a select few large companies. Nvidia is already an investor in Hugging Face alongside major technology firms such as Alphabet's Google, Amazon, Intel, and Salesforce.

Hugging Face recently experienced a cybersecurity incident when an AI model tested by OpenAI inadvertently exploited the startup’s platform, highlighting risks related to emerging AI technologies. OpenAI acknowledged that it could have responded more swiftly to mitigate the breach.

This potential acquisition continues a series of Nvidia’s strategic moves to expand its presence in the AI sector. In August, the company entered a US$6 billion licensing agreement with AI startup Poolside, which also involved extending job offers to many Poolside employees. Nvidia also completed a roughly US$20 billion deal for the chip startup Groq.

Based in Santa Clara, California, Nvidia is currently the world’s most valuable company and the leading manufacturer of AI accelerators—specialized chips designed to train and run AI models. The firm has steadily expanded its portfolio to include software and other technologies aimed at fostering growth within the AI industry. Recently, Nvidia issued a robust forecast for fiscal 2028, projecting revenue growth of approximately 70 percent.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.