Nvidia to buy AI platform Hugging Face for $12.9 billion
Nvidia has announced the acquisition of the AI platform Hugging Face for $12.9 billion to expand its influence in the artificial intelligence sector. The deal aims to support open-source AI models while maintaining Hugging Face's existing community-focused ecosystem.
Why it matters
This acquisition represents a massive consolidation of power in the AI industry, specifically bridging hardware dominance with open-source software development.
Nvidia announced Thursday it will buy artificial intelligence platform Hugging Face for $12.9 billion , as the chipmaking giant seeks to diversify its hold on the AI sector.
Nvidia CEO Jensen Huang confirmed the deal, first reported by U.S. media last month, in a statement on the company's website.
"$12.9 billion is what it took to close the deal, and it's worth every single penny," Huang told U.S. broadcaster CNBC on Thursday after the deal was announced.
The price is a marked increase from the $7 billion valuation that was the basis of initial negotiations with Nvidia late last year, according to U.S. media reports.
Founded in 2016 in New York by three French entrepreneurs, Hugging Face, whose name is inspired by an emoji, describes itself as "the AI community building the future."
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