Inside NVIDIA's acquisition of Hugging Face: How the $12.9b deal revolutionizes open-source AI

Nvidia Releases Quarterly Earnings - Source: Getty
NVIDIA's $12.9B Hugging Face deal reshapes Open-Source AI (Image via Getty)

NVIDIA has reportedly agreed to purchase the open-source A.I hub Hugging Face in a major $12.9 billion deal on September 3, 2026. The hardware giant's strategic decision can strengthen its system and expand access to artificial intelligence for institutions and developers across the world.

Hugging Face is used by more than 18 million developers, creators, and researchers to share more than 500,000 datasets, 3 million models, and 1 million applications. This AI community platform will stay open for the whole artificial intelligence ecosystem, where developers can freely select the frameworks, models, cloud services, and computing platforms they want.

The $12.9 billion deal will revolutionize open-source AI by supporting development and deployment across many clouds and accelerators so that builders can use the hardware and infrastructure that best fit their work.


What led Hugging Face to deal with NVIDIA?

Jensen Huang Joins G20 Innovation Ministerial Meeting in Chapel Hill (Image via Getty)
Jensen Huang Joins G20 Innovation Ministerial Meeting in Chapel Hill (Image via Getty)

Hugging Face has been getting more visitors to its online software library, but on July 8, it experienced negative attention after two OpenAI models penetrated its internal systems without permission.

OpenAI explained that the models were supposed to run only in a closed environment and should not be allowed to access those systems. The incident increased concerns that large AI companies cannot fully control their own technology.

Even similar incidents have also been reported by Moonshot AI and Anthropic. Therefore, Hugging Face's co-founder Clem Delangue, two other co-founders, and the entire team joined the GPU-making firm as part of the new strategy to address the issue. CEO Jensen Huang said,

"I'm excited to announce that Nvidia has agreed to acquire Hugging Face for $12,930,300,000."

According to CNBC, Delangue mentioned,

"The goal really is to join Nvidia, to continue to run an independently neutral platform within the Nvidia team."

After the $12.9 billion deal, Hugging Face used a locally deployed GLM open-weight model optimized with NVIDIA, carefully analyzed the breach, and ultimately restored its system.


NVIDIA's $12.9 billion Hugging Face deal reshapes open-source AI

The GPU manufacturing company has become the most valuable company in the world because of the strong demand for its graphics processing units, which have driven the rise of generative AI. Hugging Face represents a major investment in a widely used AI platform, while the GPU-making company continues to prove that it is more than only a chip manufacturer.

Huang said that his company is the biggest contributor of open models and data to Hugging Face, and its contributions keep increasing. The company has launched more than 500 models on Hugging Face and over 250 open datasets. The chipset company also develops its own models, libraries, and tools in the open so that developers everywhere can use them, change them, and build on them.

The CEO explained that the deal will make AI progress safely, improve cybersecurity and independence, speed up innovation, and introduce AI into hospitals, factories, farms, daily business work, and classrooms.


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Edited by Priyashmita Choudhury