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Nvidia is reported to have agreed to buy Hugging Face, the central repository for open AI models, in a $12.9 billion takeover. The Information described an agreement, while Business Insider said the companies were still in talks and had not reached a deal. As closed-model developers Anthropic and OpenAI move toward their own silicon, Nvidia’s hardware demand remains in the open-model layer distributed through Hugging Face.
What Changed
- Nvidia is reported to have agreed to buy Hugging Face for $12.9 billion, but neither company has confirmed it and the two published accounts disagree on whether a deal exists at all.
- The price is roughly 2.9 times the $4.5 billion valuation set by Hugging Face's $235 million Series D in August 2023, and about 86 times its $150 million in annualized revenue.
- Hugging Face turned down a $500 million Nvidia investment offer in late 2025 that would have valued it at $7 billion, saying it did not want a dominant investor that could sway decisions.
- Nvidia ownership would put the distribution hub for open models in the hands of the company selling the hardware most of those models run on.
AI-generated summary, reviewed by an editor. More on our AI guidelines.
An unconfirmed agreement
The Information cited one person with knowledge of an agreement on Aug. 26, 2026. In a slightly earlier account, Business Insider said recent talks valued Hugging Face at more than $13 billion, but no deal had been reached and the talks could still collapse. Microsoft also met with Hugging Face, although those discussions were no longer active as of Aug. 27, 2026.
The evidence does not establish that a sale has been completed. Neither Nvidia nor Hugging Face has confirmed the talks, and the reported price has not been independently verified. No transaction structure or closing timetable has been disclosed.
A steep price for the hub
Nvidia already owned a stake in Hugging Face after joining its $235 million Series D in August 2023, when the funding round valued the company at $4.5 billion. The proposed purchase price comes to roughly 2.9 times that amount.
Hugging Face rejected a $500 million Nvidia investment offer in late 2025 that would have valued it at $7 billion. Hugging Face said at the time it did not want a dominant investor that could sway decisions. Relative to that offer’s valuation, the reported takeover price is about 84% higher.
The price also equals roughly 86 times Hugging Face’s $150 million in annualized revenue reported during the week of Aug. 24, 2026. By comparison, Stripe’s acquisition of OpenRouter was a $7.5 billion deal on Aug. 19, 2026.
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The neutrality problem
Founded in 2016 by Clément Delangue, Julien Chaumond and Thomas Wolf, New York-based Hugging Face hosts open models and datasets. The site is often called the “GitHub of AI.” Its Spring 2026 open-source report counted 13 million users and more than 2 million public models. Those figures are the company’s own.
The same company would own the distribution hub for open models and sell the hardware most of those models run on. Business Insider put the counterweight plainly: “Nvidia ownership could also complicate one of Hugging Face’s strengths: its neutrality. The platform supports models and hardware from across the industry, including Nvidia competitors such as AMD and Intel.”
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That concern repeats Hugging Face’s own objection from late 2025, when it resisted giving one investor enough influence to sway company decisions. Nvidia was nevertheless the leading Big Tech contributor to open-source AI over the year covered by Hugging Face’s Spring 2026 report.
Nvidia’s buying capacity
Nvidia reported $96.2 billion in revenue for its fiscal second quarter of 2027 on Aug. 26, 2026, up 106% from the same quarter a year earlier. Data-center revenue reached $89 billion in the period. The company also forecast roughly 70% year-over-year revenue growth for fiscal 2028.
Nvidia said it had committed $18 billion to equity investments for the rest of fiscal 2027, on top of $47.9 billion already held in private companies. The spending comes as Anthropic weighs building its own chips and OpenAI moves ahead with a custom processor designed with Broadcom. The open-model layer still runs largely on Nvidia hardware.
Frequently Asked Questions
How much is Nvidia reported to be paying for Hugging Face?
$12.9 billion, according to The Information. Business Insider reported in a slightly earlier account that talks valued Hugging Face at more than $13 billion and that no deal had been reached. Neither company has confirmed the reports, and the price has not been independently verified.
What was Hugging Face worth before this?
Its $235 million Series D in August 2023 valued the company at $4.5 billion. The reported purchase price comes to roughly 2.9 times that amount.
Did Hugging Face turn Nvidia down before?
Yes. In late 2025 it rejected a $500 million Nvidia investment offer that would have valued it at $7 billion. Hugging Face said at the time it did not want a dominant investor that could sway decisions.
Why does Nvidia ownership raise a neutrality concern?
Hugging Face supports models and hardware from across the industry, including Nvidia competitors such as AMD and Intel. Under Nvidia, the same company would own the distribution hub for open models and sell the hardware most of those models run on.
How does the price compare with Hugging Face's revenue?
The reported $12.9 billion equals roughly 86 times Hugging Face's $150 million in annualized revenue reported during the week of Aug. 24, 2026.
AI-generated summary, reviewed by an editor. More on our AI guidelines.
Marcus Schuler
Editor-in-Chief and founder of Implicator.ai. Former ARD correspondent and senior broadcast journalist with 10+ years covering tech. Writes daily briefings on policy and market developments. Based in San Francisco. E-mail: editor@implicator.ai
