Nvidia Eyes Hugging Face Acquisition in $13B+ Deal

Nvidia Valuation Talks and Competing Deal Reports

The acquisition discussions highlight aggressive dealmaking by chipmaker Nvidia, which held $47.9 billion in private companies and committed $18 billion to equity investments for the remainder of its fiscal year, according to company statements. Business Insider reported that acquisition conversations valued Hugging Face at more than $13 billion, citing a person familiar with the matter. However, those talks remain active and could still fall apart, according to that same source. In contrast, The Information previously reported that Nvidia had already agreed to buy the startup for $12.9 billion, a figure subsequently picked up by Reuters and the Economic Times. Both Nvidia and Hugging Face declined to comment on the reports outside regular business hours.

Prior Investment History and Valuation Growth

The current talks follow a history of financial interactions between the two firms. Nvidia participated in Hugging Face’s $235 million funding round in 2023 alongside Salesforce and Alphabet’s Google, which valued the platform at $4.5 billion, according to Reuters. Late last year, Hugging Face turned down a $500 million investment offer from Nvidia that would have valued the startup at $7 billion, according to previous reporting by the Financial Times cited by Business Insider and Reuters. Hugging Face rejected the proposal because it did not want a dominant investor that could sway company decisions.

Microsoft Meetings and Industry Broader Context

Other major technology players have also engaged with the startup. Microsoft met with Hugging Face to discuss potential opportunities, but those talks are not ongoing, according to sources cited by Business Insider. The acquisition interest arrives as Hugging Face sits at the center of the open-source artificial intelligence ecosystem, hosting millions of models and datasets used by developers. Owning the platform could grant Nvidia a larger foothold among those builders and drive heavier workloads onto its graphics processing units. At the same time, an Nvidia acquisition could complicate Hugging Face’s neutrality, as the platform currently supports models and hardware from competitors such as AMD and Intel.

Frequently Asked Questions

Has Nvidia officially bought Hugging Face?

No. According to Business Insider, the companies have held acquisition conversations valuing the startup at over $13 billion, but no deal has been reached and talks could still fall apart. The Information previously reported an agreed deal at $12.9 billion, but neither Nvidia nor Hugging Face has confirmed an acquisition.

What is Hugging Face?

Founded in 2016 by Clément Delangue, Julien Chaumond, and Thomas Wolf, Hugging Face is a popular platform that hosts millions of open-source artificial intelligence models and datasets for developers.

What valuation was discussed in the recent talks?

Business Insider reported discussions valuing Hugging Face at more than $13 billion, while The Information reported a $12.9 billion figure.

Did other companies try to acquire or invest in Hugging Face?

Yes. Microsoft held meetings with Hugging Face, though those talks are no longer ongoing, according to Business Insider. Additionally, Hugging Face rejected a $500 million investment offer from Nvidia late last year that would have valued the startup at $7 billion, according to the Financial Times.