Nvidia has agreed to buy New York-based Hugging Face, which hosts open-source AI models and datasets, for US$12.9 billion, according to a report on August 27 citing a person familiar with the deal.

If completed, the transaction would be one of Nvidia’s largest acquisitions.

It would also give the chipmaker control of a major open-source AI platform as developers of closed-source models such as OpenAI and Anthropic seek to build their own chips as an alternative to Nvidia’s graphics processing units.

A previous report said Hugging Face had annualized revenue of US$150 million.

In 2023, the startup raised US$235 million at a US$4.5 billion valuation from backers including Nvidia, Salesforce, and Alphabet’s Google.

A January report said Hugging Face had rejected a US$500 million investment offer from Nvidia in 2025 that would have valued it at US$7 billion.

Nvidia on August 26 forecast a 70% jump in revenue next fiscal year and said it has US$18 billion committed to equity investments through fiscal year 2027.

🔗 Source: Reuters

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