Technology · DEALS
Key Facts
- —What happened Nvidia signed a definitive agreement to buy Hugging Face for US$12.93 billion.
- —How big The price is about US$13 billion, as Bloomberg reported.
- —The catch The deal is signed but not closed, and it still needs regulatory approval.
- —Who it hits Developers in Latin America who build on open models will watch closely.
- —What comes next Hugging Face will stay an open platform, Nvidia says.
The chip giant will pay US$12.93 billion for the open-source AI hub. The deal keeps Hugging Face open for developers.
Nvidia buys Hugging Face, the open-source AI platform, for US$12.93 billion. The deal was announced on 3 September 2026.
The Deal
Nvidia, the world’s leading maker of AI chips, has agreed to buy the platform. The price is US$12.93 billion, according to Reuters and Yahoo Finance.
Bloomberg put the value at about US$13 billion. That figure includes an up to US$1 billion equity-based retention program for the platform employees who join Nvidia.
What Hugging Face Does
Hugging Face is a popular developer platform for artificial intelligence. It hosts open-source AI models and datasets.
Open-source AI models are programs that anyone can use, modify, and share. Developers use them to build their own AI applications without starting from scratch.
Why Nvidia Wants It
Nvidia is betting that support for open AI models will drive future demand. Even as its biggest customers develop their own chips, Nvidia wants to stay central to AI development.
By owning the platform, Nvidia gains a key hub where developers gather. This strengthens its position across the AI stack, from chips to software.
The Price Breakdown
Under the deal, Nvidia will pay about US$11.9 billion to the platform investors. It will offer up to US$1 billion in equity-based retention for employees who join Nvidia.
Fox Business reported the same figures, based on Nvidia’s own filing. CNBC and TechCrunch also confirmed the US$12.93 billion price.
Hugging Face Stays Open
Nvidia says the platform will continue operating under its existing brand. It will remain an open, multi-cloud platform.
Nvidia chief executive Jensen Huang said the platform “will remain an open platform for the entire AI ecosystem”.
He said developers would keep choosing their own models, frameworks, clouds and computing platforms.
Regulatory Hurdles
The deal still needs regulatory approval before it can close. Nvidia expects to complete the purchase in the first half of 2027, Fox Business and The Register reported.
Government reviews are common for big technology purchases. Nvidia’s size in AI chips means this deal could draw extra scrutiny.
Impact on Latin American Developers
Many developers in Latin America build on open-source AI models from Hugging Face. They use these tools to create local language models and applications.
If the deal closes, these developers will watch to see if Hugging Face truly remains open. Nvidia’s promise is key to their continued trust.
Nvidia’s Share Reaction
Nvidia shares edged up slightly after the announcement, Yahoo Finance reported. The move was small, since investors had expected the deal for days.
Investors welcomed the acquisition as strengthening Nvidia’s position across the AI stack.
Background of the Talks
On 2 September 2026, Bloomberg reported Nvidia was in advanced talks to buy Hugging Face. The deal was expected to total about US$14 billion including retention.
Earlier, on 27 August 2026, The Information reported Nvidia had agreed in principle to buy Hugging Face for US$12.9 billion. Other outlets said the deal was not yet signed and could still fall through.
Hugging Face’s Valuation History
Hugging Face was valued at US$4.5 billion in its 2023 funding round. In late 2025, a proposed Nvidia investment at a US$7 billion valuation was rejected.
The current deal price of US$12.93 billion is nearly three times the 2023 valuation.
Revenue Multiples
Hugging Face had annualized revenue of about US$150 million, according to TechCrunch and other reports. That means Nvidia paid roughly 86 times revenue for the platform.
This is a high price for the revenue, but Nvidia is betting on Hugging Face’s reach among developers, not its current sales.
What Developers Should Know
Hugging Face says its platform serves over 18 million developers. It hosts more than 3 million models and 500,000 datasets, according to Nvidia’s own announcement.
Developers should watch the regulatory process. The deal is signed but not yet closed.
What Comes Next
The deal is expected to close after regulatory approvals. Nvidia plans to keep Hugging Face as an open platform.
For now, developers can continue using Hugging Face as before. The future depends on the deal’s completion.
What Is Hugging Face?
Hugging Face is a platform where developers share and use open-source AI models and datasets. It is often described as a central hub for the AI community, similar to GitHub for code.
The platform supports open AI models, meaning anyone can access and modify them. This makes it a key part of the open-source AI ecosystem, which contrasts with proprietary models from companies like OpenAI.
What Is Nvidia?
Nvidia is a major technology company known for making computer chips, especially graphics processing units (GPUs). These chips are essential for training and running AI models, giving Nvidia a dominant position in the AI hardware market.
Nvidia’s Hugging Face purchase expands it beyond hardware into software and platforms.
This move strengthens its role across the AI stack, from chips to developer tools.
What Does the Price Mean in Everyday Terms?
The deal is worth US$12.93 billion, which is a huge amount of money. To put it in perspective, that is more than the gross domestic product of some small countries, like Iceland or Luxembourg.
Nvidia will pay about US$11.9 billion to Hugging Face’s investors, and up to US$1 billion in stock to employees who join Nvidia. This means the total value includes both cash and stock incentives.
What Happened Before the Announcement?
Before the deal, Hugging Face was valued at US$4.5 billion in a 2023 funding round. In late 2025, Nvidia reportedly considered investing at a US$7 billion valuation, but that deal was rejected.
In late August 2026, reports emerged that Nvidia agreed in principle to buy Hugging Face for US$12.9 billion. The agreement was not yet signed and could still collapse.
The final deal was announced on September 3, 2026.
What Are the Next Steps?
The deal is subject to regulatory approvals, which are typical for large technology acquisitions. This means government agencies in the United States and possibly Europe will review the deal to ensure it does not harm competition.
Nvidia has said that Hugging Face will continue to operate under its existing brand as an open, multi-cloud platform. This suggests that the platform will remain available to developers across different cloud providers, not just Nvidia’s own services.
Frequently Asked Questions
What is Hugging Face?
Hugging Face is a platform that hosts open-source AI models and datasets. Developers use it to build AI applications.
How much is Nvidia paying for Hugging Face?
Nvidia is paying US$12.93 billion. Bloomberg reported the value as about US$13 billion.
Will Hugging Face remain open after the acquisition?
Nvidia says yes. Hugging Face will continue as an open, multi-cloud platform.
When will the deal close?
The deal needs regulatory approval. Nvidia expects it to close in the first half of 2027.
Connected Coverage
Sources: Reuters; Bloomberg; CNBC; TechCrunch; Yahoo Finance; Fox Business; Nvidia.
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