Nvidia Acquires Hugging Face for $12.9 Billion, Shifting Control of AI Model Marketplace

Nvidia says it will acquire Hugging Face for $12.9 billion, according to The Information report. The deal would bring the open‑source model hub under Nvidia’s hardware and software portfolio.

Hugging Face operates a public repository of transformer models used by developers worldwide. Its platform hosts millions of models that run on cloud and on‑premise systems, making it a key piece of the AI ecosystem.

The acquisition is described as a new battle for control of the AI stack, pitting Nvidia’s chip and inference strength against the open‑source model community. Analysts note the move could tighten Nvidia’s influence over model distribution and pricing.

Industry observers expect the purchase to affect competition among AI providers, as Nvidia may integrate Hugging Face services with its GPUs and software tools, potentially reshaping how developers access and deploy models.