Nvidia Nears $13 Billion Hugging Face Deal

Nvidia has reportedly agreed to acquire AI platform Hugging Face for approximately $12.9 billion, though no signed agreement exists yet. The deal would give Nvidia a major foothold in open source AI, helping protect its chip dominance as major AI labs build their own silicon to reduce reliance on Nvidia hardware. Hugging Face, last valued at $4.5 billion in 2023, generates around $150 million annually and is nearing profitability. The acquisition would also revive Nvidia's cloud computing ambitions and help offload unused computing capacity. Hugging Face previously rejected a $500 million Nvidia investment offer in late 2024.