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# Hugging Face is being acquired by NVIDIA for $12.93 billion

**[Collections](https://daily.dev/sources/collections)** · 3 min read · 67 upvotes · 19 comments

## Summary

Hugging Face is being acquired by NVIDIA in a deal valued at $12.93 billion, a figure the team says has some hidden jokes baked in. Co-founder Clement Delangue says the deal emerged from talks with Jensen Huang about scaling open-source AI through more compute, support, and visibility. NVIDIA has committed to keeping the platform open, independent, and compute-agnostic, and the founding team is staying on. Co-founder Thomas Wolf says NVIDIA is the closest fit to Hugging Face's values around open weights, open science, robotics, and AI for science. Nothing changes for users immediately; the long-term goal is 100 million AI builders owning their own models rather than renting access.

## Content

Nvidia has confirmed it will acquire Hugging Face for $12.93 billion, its largest acquisition ever, surpassing the $6.9 billion Mellanox deal. The price works out to roughly 86 times Hugging Face's $150 million in annualized revenue. About $11.9 billion goes to shareholders, with up to $1 billion in stock-based retention incentives for the roughly 750 employees.

Hugging Face co-founder and CEO Clément Delangue said he approached Jensen Huang directly, looking for more compute, infrastructure support, and visibility to keep open-source AI competitive with closed-source APIs. The founding team — Delangue, Julien Chaumond, and Thomas Wolf, who started the company in New York in 2016 — will stay on, and the Hugging Face brand remains intact.

## What the platform looks like today

Hugging Face currently serves over 18 million developers and more than 200,000 companies. It hosts 3 million models, 500,000 datasets, and 1 million applications. Nvidia is already the platform's largest contributor of open models and data.

## What Nvidia says will (and won't) change

Jensen Huang's public commitment is that Hugging Face will remain an open, multi-cloud, multi-accelerator platform. Developers won't be required to use Nvidia hardware — AWS, Google TPUs, Intel Gaudi, and AMD Instinct will all continue to be supported alongside Nvidia's own chips. Nvidia says it will invest in the platform's infrastructure, reliability, model evaluation, safety, inference, and deployment capabilities.

For users, the companies say nothing changes today. The deal still requires regulatory approval and is expected to close in the first half of 2027.

## The easter egg in the price

Thomas Wolf noted that the acquisition price of $12,930,300,000 isn't arbitrary — the number 129,303 is the decimal conversion of a binary string containing references to both Hugging Face and Nvidia. Classic.

## The open-source question

This is where it gets genuinely complicated. Nvidia's promises cover model availability and hardware neutrality, but analysts point out the commitments say nothing about search ranking, default routing, or which models get surfaced to developers first. Those are the levers that actually shape what people use.

There's no single enterprise-grade alternative that replaces Hugging Face at its scale — Azure AI Foundry, AWS SageMaker JumpStart, and Google Model Garden are partial options at best. Some consultants are already recommending that organizations mirror critical models into independent registries and separate model discovery from model custody, just in case.

The comparison to Microsoft's 2018 GitHub acquisition comes up a lot. GitHub stayed largely open, but the stakes around hardware neutrality here are arguably higher given Nvidia's position in the chip market. The community will judge the openness pledge by what actually happens to non-Nvidia hardware support over the next few years.

For what it's worth, Hugging Face had previously rejected a $500 million investment from Nvidia at a $7 billion valuation before agreeing to this full acquisition at nearly double that implied price. The reaction from the open-source AI community has been mostly positive — Julien Chaumond noted that 99% of responses were supportive, which is about as good as it gets for a $13 billion acquisition announcement.

## Questions this post answers

### How much is Nvidia paying to acquire Hugging Face?

Nvidia is acquiring Hugging Face for $12.93 billion, its largest acquisition ever, surpassing the previous record $6.9 billion Mellanox deal. This works out to about 86 times Hugging Face's $150 million in annualized revenue. Roughly $11.9 billion goes to shareholders, with up to $1 billion in stock-based retention incentives for the company's approximately 750 employees. The deal requires regulatory approval and is expected to close in the first half of 2027.

_Track how major AI infrastructure acquisitions like this reshape tool choices by following the story on daily.dev._

### Will Hugging Face still support non-Nvidia hardware like AMD and Google TPUs after the acquisition?

Yes, Nvidia has publicly committed to keeping Hugging Face an open, multi-cloud, multi-accelerator platform, with continued support for AWS, Google TPUs, Intel Gaudi, and AMD Instinct alongside Nvidia's own chips. However, analysts caution that this pledge covers hardware and model availability only, not search ranking or default model routing, which are separate levers that shape what developers actually use.

_Developers picking ML infrastructure can weigh hardware-neutrality claims like this one via daily.dev._

### Did Hugging Face reject an earlier investment offer from Nvidia before this acquisition?

Yes, Hugging Face had previously turned down a $500 million investment from Nvidia at a $7 billion valuation before agreeing to a full acquisition at nearly double that implied price, $12.93 billion. The founding team of Clément Delangue, Julien Chaumond, and Thomas Wolf, who started the company in New York in 2016, will remain in place after the deal closes.

_Anyone tracking open-source AI platform ownership shifts can follow the Hugging Face story on daily.dev._

## Community take

How the wider developer community reacted, aggregated from 5 discussions and 1 comments across x (as of 2026-09-13).

**TL;DR:** There isn't enough substantive discussion in the provided input to characterize a community reaction to the acquisition.

**Sentiment:** 0% positive · 100% mixed · 0% skeptical

**By community**

- x (mixed): The only substantive reply is an offhand personal remark unrelated to the acquisition's merits.

**Source threads**

- [x](https://x.com/mitsuhiko/status/2095615620049961450) · 0 points · 0 comments
- [x](https://x.com/hardmaru/status/2095646715865125286) · 0 points · 0 comments
- [x](https://x.com/rohanpaul_ai/status/2095682936477819266) · 0 points · 0 comments
- [x](https://x.com/ClementDelangue/status/2095652663866032417) · 0 points · 0 comments
- [x](https://x.com/iScienceLuvr/status/2095846761378259234) · 0 points · 1 comments

## Community discussion

Top comments from developers on daily.dev.

**@devgenx** · 8 upvotes

> We'll all need to keep an eye on this. Hugging Face is important to the open weight model community, if Nividia even hints at meddling, an alternative will need to be found quickly. Open source AI is moving too fast to hesitate.

**@mindinu\_dev** · 1 upvotes

> Cool. but like @devgenx said, we got to keep an eye on this cuz if Nvidia close source hugging face.

**@hardik15** · 1 upvotes

> That's surely a pretty big news in the AI. Hope it speed-up Open-AI

**@micahnorwoodjordan** · 0 upvotes

> still fairly new to the AI space, so i have no clue what this means for the future of AI 😅 ive only recently graduated from using it agentically to building inference and generation engines with it. i dont really keep up with trends and breaking news but hopefully this **_doesnt_** mark a shift toward AI becoming a closed-source commodity

**@kshitiz84** · 0 upvotes

> just waiting for github to be bought atp

## Similar posts on daily.dev

- [Nvidia confirms it will buy Hugging Face for $12.9 billion](https://daily.dev/posts/nvidia-confirms-it-will-buy-hugging-face-for-12-9-billion-g9f1t3g9c) · TechCrunch · 0 upvotes · 0 comments

---

Tags: [#machine-learning](https://daily.dev/tags/machine-learning), [#open-source](https://daily.dev/tags/open-source), [#business](https://daily.dev/tags/business), [#nvidia](https://daily.dev/tags/nvidia)

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