Nvidia Nears $13 Billion Hugging Face Takeover

Nvidia has agreed to acquire AI model hub Hugging Face for approximately $12.9 billion, according to reports, though no deal has been signed and talks could still fall apart. The acquisition would mark a massive jump from Hugging Face's last valuation of $4.5 billion in 2023. The deal would strengthen Nvidia's grip on the AI market by giving it a foothold in open-source AI development, a potential re-entry into cloud computing, and a way to offload unused computing capacity. Hugging Face, which generates around $150 million annually in revenue, previously rejected a $500 million Nvidia investment offer last year.