# Hugging Face sells to Nvidia for $12.9B after rejecting its $500M offer

Digest AI · Business & Funding · published 2026-09-24T03:36:00Z

Canonical: https://digestai.news/story/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.

Nvidia’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.

## Key points

- 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

## Why it matters

The sale signals a trend where open-source AI platforms prioritize vendor-backed resources over neutrality, raising questions about long-term independence for developers.

## Sources

1. [Why Hugging Face, after rejecting investment, initiated its own sale to Nvidia six months later](https://note.com/ai_watch_note/n/n29c88996dfc1?hl=en) (note.com, 2026-09-24)

Part of the developing story: [Nvidia's Massive AI Ecosystem Expansion](https://digestai.news/thread/nvidia-s-70-revenue-growth-outlook-explained-by-jensen-huang) (4 stories)

## Cite

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

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