Nvidia plans $12.9 billion acquisition of Hugging Face to secure open source models
Nvidia confirmed a deal to purchase New York-based startup Hugging Face for $12.9 billion, making it the company's second-largest purchase after Groq.
Nvidia Corp. announced plans to acquire Hugging Face, a New York startup specializing in open-source artificial intelligence models, for $12.9 billion. This transaction positions the deal as Nvidia's second-largest purchase, following its earlier acquisition of chipmaker Groq's assets for $20 billion. Company CEO Jensen Huang described the move as a necessary defensive step designed to protect Nvidia's position within the rapidly evolving AI market. Huang noted that approximately half of Nvidia's current business is driven by open models. The company itself identifies as a major contributor to the open-source ecosystem. Hugging Face serves as the leading platform for developers to build, share, and host their own AI models, distinguishing it from closed systems. This startup gained significant global attention recently after facing a cyberattack involving rogue AI models generated by OpenAI.
