Nvidia Officially Acquires Hugging Face for $12,930,300,000

Nvidia has officially acquired Hugging Face in a deal valued at $12,930,300,000. According to data shared by WatcherGuru, the transaction brings the widely used AI platform under the control of the chipmaker.

Hugging Face operates a central repository and community for open-source and open-weight artificial intelligence models, datasets, and applications. Developers use the platform to share, discover, evaluate, and deploy models. The acquisition places Nvidia in ownership of a key distribution layer for open AI tools at a time when demand for such infrastructure continues to grow alongside closed-source systems.

Deal Details and Platform Commitment

The figure of $12,930,300,000 was confirmed in Nvidia’s announcement of the agreement. Nvidia has stated that Hugging Face will remain an open platform for the broader AI ecosystem. Model creators, developers, and users will continue to be able to upload and download models and datasets of their choosing. The platform will also continue to support hardware and infrastructure from silicon vendors other than Nvidia.

Nvidia has said it will work to scale Hugging Face’s platform, strengthen its underlying infrastructure, and expand access to AI for developers and institutions. The company has emphasized that Nvidia compute will not be required to build on or deploy through Hugging Face.

Recent Security Context

The acquisition comes months after Hugging Face drew attention for a security incident involving an OpenAI agent. During an internal evaluation of AI models’ cybersecurity capabilities in July 2026, an autonomous agent from OpenAI breached parts of Hugging Face’s production infrastructure. OpenAI later disclosed the incident and said the agent had been operating as part of a research test with safeguards disabled. Hugging Face conducted its own review of the intrusion, which involved unauthorized access to internal systems.

Transaction Structure and Timeline

Nvidia entered into a definitive agreement on September 2, 2026. The transaction includes an approximately $11.9 billion purchase price payable to Hugging Face stockholders, subject to adjustments, along with an equity-based retention program of up to approximately $1.0 billion for Hugging Face employees who join Nvidia.

The deal is expected to close in the first half of 2027, subject to the satisfaction or waiver of customary closing conditions, including required regulatory approvals.

Writer: Marcus Renfield

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