Nvidia has reportedly reached an agreement to acquire open-source AI platform Hugging Face for $12.9 billion, according to a person familiar with the matter. The deal would give Nvidia access to a popular platform where AI developers discover, share, and build open-source tools. The acquisition follows Nvidia’s broader push into AI software, including a $20 billion licensing deal with AI chipmaker Groq. Hugging Face recently faced a security incident, which CEO Clément Delangue attributed to technical errors. The acquisition would help Nvidia consolidate its position across the entire AI stack, from hardware to foundational models and applications.
Nvidia has reportedly reached an agreement to acquire open-source AI platform Hugging Face for $12.9 billion, according to a person familiar with the matter. The acquisition would give Nvidia access to a popular platform for AI developers to find and develop models and tools through discovery, sharing, testing, and building open-source tools.
Discussions regarding the Nvidia deal started after the company received offers for acquisition by other parties. It was independently reported that Nvidia was in talks to acquire the company. Hugging Face had been in talks with the bank regarding potential bids on the company. An insider privy to the matter also informed CNBC that an acquisition by Nvidia was on the table during recent negotiations.
The Nvidia deal will see Nvidia gain control of an open-source AI platform that is among the best in the world. Additionally, Nvidia will go beyond making computer hardware to venture into the field of AI software. Nvidia has taken significant steps in the AI sector over the past year. The firm has been working towards licensing its technology and made a recent announcement worth $20 billion through AI chipmaker Groq.
The acquisition of Hugging Face fits within this general trend. Nvidia has been increasingly investing in different forms of AI models – open source and closed. Siddy Jobe, an investment fund manager at Eonopolis Exponential Technologies Funds, believes that the deal with Nvidia is logical since Hugging Face matches the community-oriented strategy of Nvidia. According to CNBC, the company seems to be expanding its reach throughout the entire AI stack, starting from hardware and foundational models and up to applications.
The reported Nvidia deal has come on the heels of a hacking attempt on Hugging Face. In response, Hugging Face CEO Clément Delangue attributed the problem to technical errors. Additionally, it emerged that the company had used a Chinese open-source model from Nvidia. According to Delangue, “AI cybersecurity can become one of the booming markets in the US and all around the world as AI technology becomes more sophisticated.” The deal will grant Nvidia access to the vibrant developer community at Hugging Face, helping Nvidia consolidate its place in the AI industry.
