Nvidia has agreed to acquire open-source artificial intelligence platform Hugging Face for approximately $12.9 billion, according to CNBC, the Wall Street Journal and the BBC. The deal, confirmed on September 3, 2026, is Nvidia’s second-largest acquisition after its roughly $20 billion purchase of Groq’s assets late last year, and marks one of the chipmaker’s biggest moves yet to expand beyond hardware and further up the AI software stack.
Deal Terms and Scale
Under the agreement, Nvidia will pay about $11.9 billion to Hugging Face investors and offer up to $1 billion in stock-based incentives to employees who join the company, according to the BBC. Hugging Face is used by more than 18 million developers and hosts more than three million AI models, with over 200,000 companies using the platform to discover and deploy AI, the companies said.
Nvidia Pledges to Keep the Platform Open
Nvidia CEO Jensen Huang said in a blog post that the companies will “scale Hugging Face’s platform, strengthen its infrastructure and expand access to AI for developers and institutions worldwide,” and that Hugging Face will remain an open platform for the broader AI ecosystem rather than being tied exclusively to Nvidia chips or services, according to CNBC.
Why It Matters for the AI Ecosystem
The acquisition comes as Nvidia works to counter the rapid rise of open-weight models developed in China, which pose a growing competitive challenge to leading US AI companies, according to the Wall Street Journal. Industry observers noted the deal could be read either as a consolidation risk for an independent hub of open AI development, or, if Nvidia keeps its commitment to openness, as a boost to smaller developers and startups that rely on Hugging Face’s tooling and model hosting.
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