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# Nvidia Confirms $12.9 Billion Hugging Face Deal, Says Its Chips Won't Be Required
- URL: https://www.implicator.ai/nvidia-confirms-12-9-billion-hugging-face-deal-says-its-chips-wont-be-required/
- Published: 2026-09-04T14:49:53.000Z
- Updated: 2026-09-04T14:49:53.000Z
- Description: Nvidia confirmed the $12.9 billion Hugging Face deal and promised its chips will not be required to use the platform. Analysts point out what the pledge does not cover: how models get ranked, searched and routed. The deal needs regulatory clearance before it closes in 2027.
- Author: Marcus Schuler
- Tags: AI News

Nvidia [confirmed Thursday](https://blogs.nvidia.com/blog/nvidia-to-acquire-hugging-face/?ref=implicator.ai) that it agreed to acquire Hugging Face for $12.9 billion. The announcement ended uncertainty around an [earlier reported deal](https://www.implicator.ai/nvidia-hugging-face-12-9-billion-acquisition/) and set out the first formal terms. Nvidia also promised that developers will not need its chips to use the platform, and the agreement still faces regulatory review before the acquisition can close.

What Changed

- Nvidia confirmed the acquisition at $12,930,300,000, with $11.9 billion going to Hugging Face investors and approximately $1 billion to an equity-based retention program for employees who join Nvidia.
- The companies expect the deal to close in the first half of 2027, subject to regulatory approval. Hugging Face's workforce was estimated at almost 750 when the deal was announced.
- Nvidia pledged that its compute will not be required to build on or deploy through Hugging Face, and committed to keeping multi-cloud and multi-accelerator support and the Hugging Face brand.
- Analysts said the pledge addresses availability but not how Hugging Face will rank, search or route models, the mechanisms that decide what developers see.

AI-generated summary, reviewed by an editor. [More on our AI guidelines](https://www.implicator.ai/about/).

## The terms

Jensen Huang gave the price as $12,930,300,000 in his Sept. 3 announcement. An Nvidia regulatory filing allocates $11.9 billion to Hugging Face investors and approximately $1 billion to an equity-based retention program for employees who agree to join Nvidia. The companies expect the acquisition to close in the first half of 2027, subject to regulatory approval.

The purchase would be Nvidia’s largest outright acquisition of a company and its second-largest transaction, after the $20 billion purchase of Groq assets in December 2025\. Hugging Face’s workforce was estimated at almost 750 when the deal was announced. It has not been announced how many of those employees will be offered Nvidia roles.

“We will have to get through all the regulatory review,” Nvidia enterprise AI vice president Justin Boitano said. “But we think overwhelmingly they’re going to see this as really a positive outcome.”

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## The openness pledge

“Hugging Face will remain an open platform for the entire AI ecosystem,” Huang wrote. Developers will remain free to choose their models, software frameworks, clouds, inference service providers and computing platforms, he said, adding: “NVIDIA compute will not be required to build on or deploy through Hugging Face.” Nvidia also committed to keeping multi-cloud and multi-accelerator support and the Hugging Face brand.

As of the Sept. 3 announcement, the companies counted more than 18 million developers, researchers and creators on the platform, along with more than 3 million models. They said more than 200,000 companies used it to find, assess and deploy AI. Those scale figures are the companies’ own.

## What the pledge omits

“Nvidia’s openness commitment is precise where it is cheap, and silent where it is expensive,” [Greyhound Research chief analyst Sanchit Vir Gogia](https://www.infoworld.com/article/4218324/what-nvidias-13b-acquisition-of-hugging-face-means-for-ai-model-choice.html?ref=implicator.ai) said. In Gogia’s account, Nvidia’s announcement makes promises about availability but does not address how Hugging Face will rank, search or route models after the deal closes. He identified those mechanisms as the ones that can shape what developers see. “Nobody has to be banned for the field to tilt. Gravity is enough and gravity is the part the pledge does not mention.”

Brian Levine, executive director of FormerGov, described the risk as gradual. “It’s a slow drift, where the Nvidia-optimized path quietly becomes the easy path, and everything else becomes the friction path.” He advised companies to treat Hugging Face as a strategically owned platform instead of a vendor-neutral utility.

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Jason Andersen, principal analyst at Moor Insights & Strategy, pointed to prior acquisitions for a more optimistic comparison. “What happened to Red Hat after IBM bought it? Things got better,” he said. “The same can be said for GitHub after Microsoft bought it.”

## Why Hugging Face sold

Clément Delangue said he approached Huang over the summer after he concluded that Hugging Face needed more resources and visibility. He called Nvidia “a perfect home” and said he wanted the platform’s builder count to reach 100 million “in the next few years.”

The question of whether Hugging Face would remain open under Nvidia came up on the [press call](https://siliconangle.com/2026/09/03/nvidias-hugging-face-deal-is-a-bet-on-open-models-and-proof-its-no-longer-just-a-chip-company/?ref=implicator.ai). Delangue said: “Everyone can fork our open source if they’re not happy about it.”

Frequently Asked Questions

How much is Nvidia paying for Hugging Face?

Jensen Huang gave the price as $12,930,300,000 in his Sept. 3 announcement. An Nvidia regulatory filing allocates $11.9 billion to Hugging Face investors and approximately $1 billion to an equity-based retention program for employees who agree to join Nvidia.

When is the deal expected to close?

The companies expect the acquisition to close in the first half of 2027, subject to regulatory approval. Nvidia enterprise AI vice president Justin Boitano said the company would have to get through all the regulatory review, but expected reviewers to see the deal as a positive outcome.

Will developers need Nvidia chips to use Hugging Face?

Nvidia says no. Huang wrote that Nvidia compute will not be required to build on or deploy through Hugging Face, and that developers will remain free to choose their models, frameworks, clouds, inference service providers and computing platforms. Nvidia also committed to keeping multi-cloud and multi-accelerator support and the Hugging Face brand.

What do analysts say the openness pledge leaves out?

Greyhound Research chief analyst Sanchit Vir Gogia said the announcement makes promises about availability but does not address how Hugging Face will rank, search or route models after the deal closes. Brian Levine of FormerGov described the risk as a slow drift in which the Nvidia-optimized path quietly becomes the easy path.

Why did Hugging Face agree to sell?

Clement Delangue said he approached Huang over the summer after concluding that Hugging Face needed more resources and visibility. He called Nvidia a perfect home and said he wanted the platform's builder count to reach 100 million in the next few years.

AI-generated summary, reviewed by an editor. [More on our AI guidelines](https://www.implicator.ai/about/).

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