Nvidia Agrees to Acquire Hugging Face for $12.93 Billion in Massive Software Play
On Thursday, September 3, 2026, Nvidia and Hugging Face officially confirmed that they have entered into a definitive agreement under which Nvidia will acquire Hugging Face, the central repository and developer hub for open-weights AI models, for $12.93 billion in cash. The transaction represents Nvidia's largest single acquisition to date, signaling a massive strategic expansion beyond hardware and accelerated compute directly into the AI software distribution layer.
Deal Structure and Open-weights Ecosystem Impact
Under the terms of the agreement, Hugging Face will remain an open, hardware-neutral platform for the entire artificial intelligence community. Hugging Face CEO Clement Delangue and Nvidia CEO Jensen Huang both pledged that the platform will continue to support open-source and open-weights models from every builder, as well as competing silicon architectures and cloud providers.
Financially, the $12.93 billion purchase price represents a valuation of approximately 86 times revenue, based on Hugging Face's estimated $150 million in annualized revenue. The high multiple underscores the premium Nvidia is willing to pay to secure the "front door" where developers share and download open AI models. The deal is currently subject to regulatory approval by antitrust authorities in the US and the European Union EU AI Act Active Enforcement Begins: First €47 Million in Fines Levied as "AI Omnibus" Delays High-Risk System Compliance to 2027.
"Super happy to share our intention to join forces with NVIDIA in a $12,930,300,000 acquisition... Hugging Face will remain an open platform for the entire AI ecosystem." — Clement Delangue, Hugging Face CEO, September 3, 2026
"Nvidia (NVDA) on Thursday confirmed its plans to acquire the open-weight AI platform Hugging Face for roughly $13 billion, sending its shares up roughly 2%. The deal will see Nvidia pay $12.93 billion for the platform, per a press release... The company says Hugging Face will remain open to competing hardware, cloud providers and AI frameworks." — Yahoo Finance / TechCrunch, September 3, 2026