Nvidia has agreed to acquire AI platform Hugging Face in a deal valued at $12.93 billion. Nvidia CEO Jensen Huang announced the transaction on Thursday, September 3, 2026. A Reuters report detailed the payment structure, noting that $11.9 billion will go to Hugging Face investors, while the remaining $1 billion is allocated for a specialized equity retention program for employees who join Nvidia.
Hugging Face currently occupies a central position in the global artificial intelligence ecosystem, serving more than 18 million active developers. Its repositories host over 3 million AI models. The acquisition immediately grants Nvidia control over the largest AI model distribution hub amid fierce competition among tech giants for market share across chips, software, and developer tools.
Pledge to Keep the Ecosystem Open
Nvidia’s involvement with Hugging Face extends well before the buyout announcement, with the chipmaker having already published over 500 open models and 250 datasets on the platform. The ownership change initially sparked concerns that Nvidia might restrict access solely to its proprietary ecosystem.
Jensen Huang dismissed those speculations, emphasizing that Hugging Face will remain an open platform for the broader AI ecosystem. He pledged that developers will not be required to use Nvidia hardware to build or deploy models on the platform.
According to a Financial Times report, the acquisition is expected to close in 2027. While details regarding the required regulatory approvals remain undisclosed, Nvidia’s dominant industry position often draws close scrutiny from antitrust authorities.
Addressing Security Vulnerabilities
The multi-billion-dollar deal comes just one month after Hugging Face suffered a security breach. Platform management disclosed a vulnerability that allowed external unauthorized access, reportedly carried out by an autonomous AI agent.
The autonomous AI agent gained unauthorized access to internal datasets as well as critical service credentials within the platform. Securing the repositories containing millions of digital assets has now become a new priority for Nvidia.
The acquisition of Hugging Face solidifies Nvidia’s strategic footprint across the artificial intelligence sector. The company now not only dominates data center chip sales but also commands the key infrastructure where tens of millions of AI developers collaborate.
Source: Cointelegraph.
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