Nvidia agrees to buy Hugging Face for $12.9 billion
Nvidia has agreed to acquire Hugging Face, the open-source AI platform, for $12.9 billion, according to a report by Reuters citing unnamed sources. The deal, reported on 27 August, would mark one of the largest AI-software acquisitions in history and consolidate Nvidia's position at the centre of the global AI stack.
By Source Reporters Newsdesk
Thu, 27 August 2026 · 1 min read
Nvidia has agreed to acquire Hugging Face, the open-source AI platform, for $12.9 billion, according to a report by Reuters citing unnamed sources. The deal, reported on 27 August, would mark one of the largest AI-software acquisitions in history and consolidate Nvidia's position at the centre of the global AI stack.
The reported acquisition comes at a moment when the AI industry is consolidating rapidly. Nvidia's hardware — the GPUs that train and run large models — has made it the most valuable company in the world, but control over software, developer communities and model distribution has become an increasingly important battleground. Hugging Face, founded in 2016, hosts more than 1 million models and has become the de facto repository for open-source AI.
Reuters described the discussions as advanced but noted that terms could still change or the deal could fall through. No official confirmation had been issued by Nvidia or Hugging Face at the time of the report. The Information, which first reported the potential deal, gave the same $12.9 billion valuation.
The acquisition would further concentrate AI capability in a single corporate ecosystem, a development that has already drawn scrutiny from regulators in Brussels, Washington and Beijing. Nvidia has faced antitrust scrutiny in the United States and Europe over its dominance of AI chip supply, and a move to absorb the leading open-source AI community would likely attract fresh regulatory attention.
The reported deal is the latest in a wave of AI-industry consolidation. In recent months, major tech companies have raced to acquire or partner with model developers, data firms and specialised hardware startups, as the economics of AI shift from experimentation to deployment at scale.
**Sources:** Reuters
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