Nvidia agrees to buy Hugging Face for about $12.9 billion, according to The Information
The Information reported that Nvidia has agreed to acquire the open-source AI platform Hugging Face for roughly $12.9 billion, a figure picked up by CNBC and TechCrunch. Business Insider reported separately that talks valued the company at around $13 billion and were not yet signed. Neither company has confirmed the deal. At the reported price the platform would fetch a steep multiple on roughly $150 million of annual revenue, and TechCrunch frames the purchase as a route back into cloud computing for Nvidia after it wound down much of its DGX Cloud business.
Nvidia has agreed to buy Hugging Face, the open-source AI model hub, for about $12.9 billion, according to The Information, whose report was carried by both CNBC and TechCrunch . Neither company has confirmed a signed agreement. Business Insider reported separately that the two sides were in talks at around $13 billion and that nothing had been signed, so the two figures circulating are two independent reports rather than one number restated .
The price implies a steep multiple on the business being bought. The Information put Hugging Face's annual revenue at roughly $150 million, and the company last raised outside money in 2023 at a $4.5 billion valuation . Nvidia itself offered $500 million for a stake at a $7 billion valuation last year and was turned down, which makes the reported figure a sharp markup in about twelve months.
The strategic logic is control of the software layer sitting directly above Nvidia's GPUs. TechCrunch frames the deal as a comeback in cloud computing for NVDA, tying it to the company having scaled back its own DGX Cloud business roughly a year ago and to Hugging Face's rented-compute infrastructure offering a way back into that market . That is a narrower claim than a broad re-entry into cloud services, and neither CNBC piece makes it.
The report also lands a day after the print that is actually moving the stock. Nvidia's fiscal second quarter brought revenue of $96.2 billion, up 106% from a year ago, third-quarter guidance of $108.0 billion, and a call for 70% revenue growth in fiscal 2028 against roughly 44% consensus. NVDA traded at $224.77, up 7.2% on the session, per SentiSense data, with the stock ranked first in our social dominance table.
What to watch: confirmation or denial from either company, the antitrust review a transaction of this size will attract given Nvidia's position in AI accelerators, and how Hugging Face's open-source community responds to a chipmaker owner. A separate thread worth tracking is the AI agent security incident disclosed at Hugging Face this week, which reporting has linked to the urgency behind finding a stable owner.
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