Nvidia to buy Hugging Face for $12.9 billion to expand AI software reach

Nvidia announced on September 2, 2026 that it would acquire Hugging Face in a transaction valued at approximately $12.93 billion, marking a major expansion of the chipmaker's footprint into artificial intelligence software development. The deal structure includes $11.9 billion paid to shareholders alongside employee retention incentives totaling up to $1 billion. This move addresses a strategic gap for Nvidia, which seeks to extend its dominance from hardware into the open-model ecosystem where AI developers build and distribute their work. Jensen Huang, Nvidia's CEO, told CNBC the purchase would serve as a significant growth catalyst. Closure is anticipated between January and June 2027, pending standard regulatory clearance. Nvidia pledged to preserve Hugging Face's vendor-neutral character, ensuring the platform remains accessible to developers using chips from competing manufacturers. The platform currently supports an 18-million-person user base alongside 3 million models, 500,000 datasets, and 1 million deployed AI applications.

1. Nvidia and Hugging Face agreed to the acquisition on September 2, 2026, as disclosed in an SEC Form 8-K filing
2. The $12.93 billion price comprises $11.9 billion for shareholders and retention payments reaching $1 billion as equity awards
3. CEO Jensen Huang characterized the deal to CNBC as driving substantial growth
4. Hugging Face hosts 18 million users, 3 million models, 500,000 datasets, and 1 million AI applications
5. Closing is scheduled for the first half of 2027, contingent on customary conditions and regulatory sign-off
6. Nvidia committed to operating Hugging Face as a vendor-neutral platform open to non-Nvidia chip suppliers
7. Hugging Face CEO Clement Delangue indicated the company sought Nvidia's partnership to provide open-source AI with greater resources and scale