## Nvidia–Hugging Face: A $13B AI Deal in the Works **The headline:** Nvidia is in advanced talks to acquire Hugging Face, the leading open-source AI model hub, in a deal valuing the company at roughly **$12.9–13 billion**. The deal is not yet signed and could still fall apart. ### What changed (the timeline) - **Aug 23 (Sunday):** Business Insider first reported Hugging Face was exploring a sale that could value it at $13 billion or more, working with a bank to evaluate bidders' interest. ([Reuters summary](https://www.reuters.com/business/hugging-face-exploring-sale-valuing-it-13-billion-business-insider-says-2026-08-23/)) - **Aug 26–27 (Wed):** The Information reported Nvidia had **agreed** to buy Hugging Face for **$12.9 billion**, citing a person with knowledge of the deal. ([CNBC](https://www.cnbc.com/2026/08/27/nvidia-hugging-face-acquisition.html), [TechCrunch](https://techcrunch.com/2026/08/26/nvidia-closes-in-on-hugging-face-acquisition/)) - **Same day (Wed):** Business Insider pushed back, reporting the talks — valuing Hugging Face at **more than $13 billion** — had **not yet produced a signed agreement** and "could still fall apart." ([Business Insider](https://www.businessinsider.com/nvidia-in-talks-to-buy-hugging-face-13-billion-dollars-2026-8)) - **CNBC confirmation:** A source familiar with the matter told CNBC they could "confirm acquisition [by Nvidia] has been part of ongoing and recent talks." Neither company has officially confirmed or commented. ([CNBC](https://www.cnbc.com/2026/08/27/nvidia-hugging-face-acquisition.html)) So the precise status is contested: The Information frames it as an "agreed" deal at $12.9B; Business Insider frames it as ongoing talks above $13B with no signed agreement. The most accurate summary is that a deal is **near but not finalized**. ### Why it matters - **Nvidia's biggest strategic bet on open-source AI.** Hugging Face hosts millions of open-source models and datasets used by developers worldwide. Owning it would give Nvidia a direct foothold in the open-source ecosystem — a counterweight to closed labs (OpenAI, Google, Anthropic) that are building their own chips to reduce reliance on Nvidia. A thriving open-model ecosystem keeps more of the market dependent on Nvidia hardware. ([TechCrunch](https://techcrunch.com/2026/08/26/nvidia-closes-in-on-hugging-face-acquisition/)) - **A cloud-computing comeback.** Nvidia scaled back its DGX Cloud business about a year ago. Owning Hugging Face — which already helps developers rent compute — could let Nvidia re-enter cloud without starting from scratch, and sell unused capacity from its cloud-compute guarantees to Hugging Face's customers. ([TechCrunch](https://techcrunch.com/2026/08/26/nvidia-closes-in-on-hugging-face-acquisition/)) - **A huge valuation jump.** Hugging Face raised $235M in 2023 at a $4.5B valuation (Nvidia participated). It reportedly generates ~$150M/year in revenue (up from ~$100M two months earlier) and is "close to profitability." A ~$13B price is a massive multiple. ([TechCrunch](https://techcrunch.com/2026/08/26/nvidia-closes-in-on-hugging-face-acquisition/), [Business Insider](https://www.businessinsider.com/nvidia-in-talks-to-buy-hugging-face-13-billion-dollars-2026-8)) - **A reversal for Hugging Face.** Hugging Face turned down a $500M Nvidia investment late last year (which would have valued it at $7B), saying it didn't want a dominant investor. A full buyout is different from taking on one giant backer. ([Business Insider](https://www.businessinsider.com/nvidia-in-talks-to-buy-hugging-face-13-billion-dollars-2026-8), [TechCrunch](https://techcrunch.com/2026/08/26/nvidia-closes-in-on-hugging-face-acquisition/)) - **Competition and neutrality concerns.** Microsoft also met with Hugging Face, but those talks are not ongoing. Nvidia ownership could complicate Hugging Face's neutrality — it supports models and hardware from Nvidia competitors like AMD and Intel. ([Business Insider](https://www.businessinsider.com/nvidia-in-talks-to-buy-hugging-face-13-billion-dollars-2026-8)) - **Context:** Nvidia has $18B committed to equity investments for the rest of its fiscal year, on top of $47.9B already held in private companies, and recently struck a $20B licensing deal with AI chip startup Groq. ([Business Insider](https://www.businessinsider.com/nvidia-in-talks-to-buy-hugging-face-13-billion-dollars-2026-8), [CNBC](https://www.cnbc.com/2026/08/27/nvidia-hugging-face-acquisition.html)) ### Strongest sources (all opened) - **Business Insider** (original exclusive, most cautious framing): [Nvidia has been in talks to acquire Hugging Face for more than $13 billion](https://www.businessinsider.com/nvidia-in-talks-to-buy-hugging-face-13-billion-dollars-2026-8) - **TechCrunch** (deepest analysis of strategic rationale): [Nvidia closes in on Hugging Face acquisition](https://techcrunch.com/2026/08/26/nvidia-closes-in-on-hugging-face-acquisition/) - **CNBC** (independent confirmation from a source): [Nvidia reportedly agrees to buy Hugging Face for $12.9 billion](https://www.cnbc.com/2026/08/27/nvidia-hugging-face-acquisition.html) Note: Reuters and Bloomberg also covered the story, but their pages were not accessible in this browser (Reuters returned a non-HTML document; Bloomberg was blocked by a CAPTCHA). The Reuters headlines and snippets corroborate the same facts. As of now, **neither Nvidia nor Hugging Face has officially confirmed the deal**, and the exact price/status ($12.9B "agreed" vs. >$13B "in talks") remains unsettled across outlets.