Nvidia Reportedly Nears $13B Hugging Face Deal, but Accounts Differ on Agreement
The reported purchase would give Nvidia ownership of a platform for sharing AI models and hosting software. The price is broadly aligned across accounts; the deal’s status is not.
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Story brief
3 key pointsNvidia’s reported interest would turn its existing backing of Hugging Face into potential ownership of a platform used to share open-source models and host AI software. The reported price—$12.9 billion—would be nearly triple Hugging Face’s $4.5 billion valuation from three years ago, but the transaction is not confirmed. The Information describes an agreement, while Business Insider reports serious recent talks....
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Nvidia is already an investor alongside Google, Amazon, Intel, Salesforce and others, making a purchase a shift from funding to control.
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The reported $12.9 billion valuation compares with Hugging Face’s $4.5 billion funding valuation three years earlier.
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The Information reports an agreement; Business Insider reports serious discussions, and neither company has confirmed the transaction.
Nvidia is reportedly pursuing Hugging Face in a transaction valued at roughly $13 billion, putting a major AI model-sharing and software-hosting platform in the chipmaker’s sights. The published accounts largely agree on price, but differ on whether the companies are still negotiating or have already reached a deal.
The price aligns; the reported deal status does not
The Information reported that Nvidia had reached an agreement to buy Hugging Face for $12.9 billion. Business Insider, citing an unidentified person familiar with the matter, reported that the companies had held serious discussions in recent weeks. Nvidia and Hugging Face did not immediately respond to Bloomberg News requests for comment, leaving the reported transaction unconfirmed by either company.
A platform Nvidia already helps fund
Hugging Face develops and hosts a platform for sharing open-source AI models, while also hosting AI software for other companies. Nvidia is already among its backers, alongside Google, Amazon, Intel, Salesforce and others. A purchase would move Nvidia from an investment relationship to ownership of a business spanning model sharing and hosted software.
The reported valuation also offers a sharp reference point. Hugging Face was valued at $4.5 billion in a funding round three years earlier. Nvidia has recently struck a $6 billion licensing agreement with Poolside that included job offers to many of its employees, and it reportedly paid about $20 billion for most of chip startup Groq.
A recent security event adds context
Hugging Face was recently involved in a cybersecurity incident in which an OpenAI model being tested on the platform inadvertently hacked its systems. The episode raised alarms about the safety of cutting-edge AI technology, a notable recent backdrop as Nvidia reportedly considers buying the company.
Editorial analysis
Our Read
Our Read: Nvidia already backs Hugging Face, so a confirmed purchase would be a shift from investment to control of a business that sits closer to model distribution and software hosting. That is a different layer of the AI stack from Nvidia’s accelerators. The immediate test is a company announcement, not another valuation estimate: it would establish whether a deal exists and how Hugging Face’s model-sharing and hosting operations would sit under Nvidia. The platform’s recent OpenAI-related security incident also makes operational safeguards a meaningful part of that future structure.
Sources
- bloomberg.comNvidia in talks to buy AI startup Hugging Face, reports say
- moneycontrol.comNvidia in talks to buy AI startup Hugging Face, reports say - Moneycontrol.com
