Nvidia Reportedly Moves to Acquire Hugging Face for $12.9 Billion

The deal, first reported by The Information, marks a significant shift in the relationship between the two companies. Nvidia previously participated in Hugging Face’s 2023 Series D funding round, which valued the startup at $4.5 billion. However, a reported $500 million buyout offer from the chipmaker late last year was rebuffed, with Hugging Face leadership expressing concerns over the influence of a single, dominant investor. Cofounder Thomas Wolf declined to confirm the current rumors, noting only that the platform has consistently attracted significant acquisition interest.

For the open-source community, the prospect of Nvidia ownership has triggered a polarized response. Critics on forums like Reddit warn that the acquisition could signal an attempt to consolidate power, raising fears of censorship or the weaponization of the repository against competitors. Conversely, some developers argue that Nvidia’s hardware-centric business model necessitates a thriving, open ecosystem to drive demand for its GPUs. This strategic alignment, they suggest, makes radical changes to the platform unlikely. As Nvidia continues to post record-breaking revenue—reaching $96.2 billion in its latest quarter—the company remains aggressive in securing its position atop the AI landscape, even as regulatory hurdles in markets like China persist.