{"version":1,"type":"story","url":"https://digestai.news/story/hugging-face-sells-to-nvidia-for-12-9b-after-rejecting-its-500m-offer","json":"https://digestai.news/story/hugging-face-sells-to-nvidia-for-12-9b-after-rejecting-its-500m-offer.json","markdown":"https://digestai.news/story/hugging-face-sells-to-nvidia-for-12-9b-after-rejecting-its-500m-offer.md","slug":"hugging-face-sells-to-nvidia-for-12-9b-after-rejecting-its-500m-offer","headline":"Hugging Face sells to Nvidia for $12.9B after rejecting its $500M offer","summary":"Hugging Face, the open-source AI model hub used by 18 million developers, sold itself to Nvidia for about **$12.9 billion** in September 2026—just six months after rejecting a **$500 million investment offer** from the same company. The platform’s CEO, Clément Delangue, said the shift reflected a need for **computing resources, talent, and visibility** beyond what Hugging Face could provide alone, despite its **$150 million annual recurring revenue** and near-profitability as of August 2026.\n\nNvidia’s acquisition includes **$11.9 billion in shareholder payouts** and **$1 billion in stock** for Hugging Face employees. The deal hinges on regulatory approval and is expected to close in the first half of 2027. While Nvidia pledged to keep Hugging Face **open, multi-cloud, and neutral**, concerns persist about potential bias in model rankings or deprioritization of non-Nvidia hardware. Developers fear a repeat of Microsoft’s 2018 GitHub acquisition, where neutrality promises later faced scrutiny.","keyPoints":["Hugging Face sold to Nvidia for **$12.9B** after rejecting its **$500M investment** in late 2025, citing independence concerns","Nvidia’s offer included **$11.9B in cash** and **$1B in stock** for Hugging Face employees, plus promises of neutrality","Developers worry about **biased model rankings** or **deprioritization of non-Nvidia hardware**, despite Nvidia’s pledges"],"whyItMatters":"The sale signals a trend where open-source AI platforms prioritize vendor-backed resources over neutrality, raising questions about long-term independence for developers.","category":{"slug":"business","name":"Business & Funding","url":"https://digestai.news/category/business"},"entities":{"companies":["Hugging Face","Nvidia","Google","Amazon","Salesforce","Microsoft"],"models":[],"people":["Clément Delangue","Jensen Huang"]},"firstPublishedAt":"2026-09-24T03:36:00Z","updatedAt":"2026-09-24T03:36:00Z","sourceCount":1,"hasPrimarySource":false,"sources":[{"outlet":"note.com","title":"Why Hugging Face, after rejecting investment, initiated its own sale to Nvidia six months later","url":"https://note.com/ai_watch_note/n/n29c88996dfc1?hl=en","publishedAt":"2026-09-24T03:36:00Z","type":"press","primary":false,"lead":true}],"sourceNotes":null,"discussions":[],"thread":{"title":"Nvidia's Massive AI Ecosystem Expansion","url":"https://digestai.news/thread/nvidia-s-70-revenue-growth-outlook-explained-by-jensen-huang","storyCount":4},"cite":{"text":"Digest AI, \"Hugging Face sells to Nvidia for $12.9B after rejecting its $500M offer\", 24 September 2026, https://digestai.news/story/hugging-face-sells-to-nvidia-for-12-9b-after-rejecting-its-500m-offer","publisher":"Digest AI","title":"Hugging Face sells to Nvidia for $12.9B after rejecting its $500M offer","datePublished":"2026-09-24T03:36:00Z","url":"https://digestai.news/story/hugging-face-sells-to-nvidia-for-12-9b-after-rejecting-its-500m-offer"},"generatedBy":"Written by Digest AI's editorial model from the linked sources; the sources are the record.","license":"Headlines, digests and key points are written by Digest AI and may be quoted with a link to the story page. Linked articles belong to their publishers. Terms: https://digestai.news/terms#reuse"}