Nvidia to acquire Hugging Face for $12.9 billion

While some of the best GPUs may spring to mind first when you think of Nvidia, the company's recent contributions in AI go well beyond selling processors, and those contributions may be intensifying following the recent announcement that Nvidia agreed to acquire the company Hugging Face. The agreement was made public on September 2, 2026, and the $12.9 billion deal, set to finalize in the first half of 2027, brings one of the most prominent figureheads in open AI development under Team Green's purview.

Hugging Face is a community for over 18 million developers and power users to come together, collaborate, and share AI models (among other resources like tutorials) built for various solutions in data science and machine learning. Visit the Hugging Face website, and you'll see that one of its most prominent features is the Hugging Face Hub, a massive repository where creators can find and share apps, models, and datasets. It's similar to GitHub, but with a much heavier focus on machine learning and AI development.

But it's not just for individuals. According to Nvidia, "more than 200,000 companies use the platform to discover, evaluate, customize and deploy AI," so acquiring Hugging Face is a two-pronged attack strategy. acquire a major AI player ingrained into a significant portion of corporate tech, and gain a direct access line to a passionate community of creators and their projects.

Why would Nvidia buy Hugging Face?

Over the years, Nvidia engineered a comprehensive software ecosystem to complement its hardware, including CUDA (Compute Unified Device Architecture), which is a major perk of switching to Nvidia GPUs according to owners, and a growing slate of tools, libraries, and AI models. Acquiring Hugging Face gives Nvidia ownership of a platform millions of developers use to discover, customize, and deploy those models, furthering the company's reach beyond the hardware and software infrastructure that powers those applications.

Hugging Face's emphasis on open models is particularly important to Nvidia here — unlike proprietary services that keep architecture and weights behind closed doors, open-source and open-weight models give developers considerably more freedom to access, modify, and distribute AI models on their own infrastructure. Hugging Face has quickly become a bustling distribution point for those models.

Nvidia CEO Jensen Huang has also been a vocal supporter of open models, and Nvidia itself has already contributed hundreds of models and datasets to Hugging Face, including GR00T training data which rose to the top 10 most-downloaded datasets on the entire platform. Aside from expanding Nvidia's grip on the AI sector, there is also a defensive aspect to the acquisition. Major Nvidia customers are developing their own AI processors, including Microsoft (Maia 200), Google (Tensor Processing Units), and Amazon (Trainium 3), potentially reducing their reliance on Nvidia's products over time. Owning a platform used by millions of AI developers could give Nvidia another avenue for maintaining its influence over the broader AI ecosystem.