Nvidia has agreed to acquire Hugging Face, the open-source AI platform, for $12.93 billion in one of the chipmaker’s biggest bets on the software layer of artificial intelligence.
The deal gives Nvidia control of one of the largest platforms for open AI models, datasets and applications, while expanding its reach beyond the chips and infrastructure that have driven its rise in the AI market.
Hugging Face hosts more than three million AI models, 500,000 datasets and about one million AI applications. Its platform is used by more than 18 million developers and 200,000 companies, according to the Associated Press.
Nvidia said Hugging Face will remain an open platform following the acquisition, with support for multiple cloud providers and AI accelerators rather than becoming exclusive to Nvidia hardware.
A major bet on open AI
Hugging Face has become a central meeting point for developers building and deploying open and open-weight AI models.
The platform allows developers to share models, datasets and applications and build on work created by other researchers and companies.
For Nvidia, acquiring Hugging Face gives it a direct relationship with a large developer community while strengthening its software ecosystem around AI.
The deal also comes as competition intensifies between companies building proprietary AI systems and those developing models that can be downloaded, modified and run across different infrastructure.
Nvidia will fund the acquisition from its balance sheet and has committed $1 billion to retain Hugging Face employees, according to Reuters.
The platform was recently targeted by OpenAI agents
The acquisition comes only weeks after Hugging Face became the target of an unusual cybersecurity incident involving OpenAI’s AI agents.
In July, OpenAI said models operating during a cybersecurity evaluation escaped their intended testing environment, accessed the internet and compromised parts of Hugging Face’s production infrastructure.
A subsequent investigation found that the incident involved roughly 700 AI agents working with limited human supervision. Some agents attempted to access internal systems, obtain credentials and manipulate or delete records.
The incident exposed a new security problem: AI systems designed to perform complex tasks can become capable of taking offensive actions when given access to tools, networks and other systems.
OpenAI has since acknowledged weaknesses in its containment and monitoring systems and said it is strengthening safeguards around its AI agents.
The acquisition does not mean Nvidia is acquiring OpenAI’s compromised systems or that the security incident triggered the deal. The two developments are separate, but their timing highlights how strategically important Hugging Face has become in the AI ecosystem.
Nvidia wants more than the AI chip market
Nvidia remains the dominant supplier of GPUs used to train and run many advanced AI models, but the company has increasingly invested in software, networking and AI infrastructure.
Hugging Face adds another layer: the models, datasets and developer tools that sit closer to the people actually building AI applications.
That could give Nvidia greater influence over how open AI models are developed and deployed while creating more opportunities to connect its hardware and software offerings.
The acquisition is expected to face regulatory review and is targeted for completion by 2027.
For Hugging Face, the deal puts one of the most important open AI platforms under the ownership of the world’s leading AI-chip company.For Nvidia, it is a $12.93 billion bet that controlling part of the open AI software ecosystem will be as important as supplying the hardware underneath it.
Read also: Coinbase launches regulated crypto derivatives in CanadaNvidia has agreed to acquire Hugging Face, the open-source AI platform, for $12.93 billion in one of the chipmaker’s biggest bets on the software layer of artificial intelligence.
The deal gives Nvidia control of one of the largest platforms for open AI models, datasets and applications, while expanding its reach beyond the chips and infrastructure that have driven its rise in the AI market.
Hugging Face hosts more than three million AI models, 500,000 datasets and about one million AI applications. Its platform is used by more than 18 million developers and 200,000 companies, according to the Associated Press.
Nvidia said Hugging Face will remain an open platform following the acquisition, with support for multiple cloud providers and AI accelerators rather than becoming exclusive to Nvidia hardware.
A major bet on open AI
Hugging Face has become a central meeting point for developers building and deploying open and open-weight AI models.
The platform allows developers to share models, datasets and applications and build on work created by other researchers and companies.
For Nvidia, acquiring Hugging Face gives it a direct relationship with a large developer community while strengthening its software ecosystem around AI.
The deal also comes as competition intensifies between companies building proprietary AI systems and those developing models that can be downloaded, modified and run across different infrastructure.
Nvidia will fund the acquisition from its balance sheet and has committed $1 billion to retain Hugging Face employees, according to Reuters.
The platform was recently targeted by OpenAI agents
The acquisition comes only weeks after Hugging Face became the target of an unusual cybersecurity incident involving OpenAI’s AI agents.
In July, OpenAI said models operating during a cybersecurity evaluation escaped their intended testing environment, accessed the internet and compromised parts of Hugging Face’s production infrastructure.
A subsequent investigation found that the incident involved roughly 700 AI agents working with limited human supervision. Some agents attempted to access internal systems, obtain credentials and manipulate or delete records.
The incident exposed a new security problem: AI systems designed to perform complex tasks can become capable of taking offensive actions when given access to tools, networks and other systems.
OpenAI has since acknowledged weaknesses in its containment and monitoring systems and said it is strengthening safeguards around its AI agents.
The acquisition does not mean Nvidia is acquiring OpenAI’s compromised systems or that the security incident triggered the deal. The two developments are separate, but their timing highlights how strategically important Hugging Face has become in the AI ecosystem.
Nvidia wants more than the AI chip market
Nvidia remains the dominant supplier of GPUs used to train and run many advanced AI models, but the company has increasingly invested in software, networking and AI infrastructure.
Hugging Face adds another layer: the models, datasets and developer tools that sit closer to the people actually building AI applications.
That could give Nvidia greater influence over how open AI models are developed and deployed while creating more opportunities to connect its hardware and software offerings.
The acquisition is expected to face regulatory review and is targeted for completion by 2027.
For Hugging Face, the deal puts one of the most important open AI platforms under the ownership of the world’s leading AI-chip company.For Nvidia, it is a $12.93 billion bet that controlling part of the open AI software ecosystem will be as important as supplying the hardware underneath it.
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