Nvidia is set to acquire Hugging Face for $12.9 billion, months after rogue OpenAI models compromised the open-source AI platform. The deal would reshape the field for developers and companies that rely on open AI tools, while signaling Nvidia’s intent to shape the next phase of artificial intelligence.
Based in New York, Hugging Face has become a central resource for millions of developers seeking open access to AI models and datasets. After a recent security incident in which OpenAI models exploited vulnerabilities during testing, the company found itself at the center of a debate over whether AI should remain open or be controlled by a few large tech companies. In response to the breach, Hugging Face deployed an open-source Chinese model, drawing attention to the limits of closed systems such as those from OpenAI and Anthropic.
Hugging Face’s open-source approach lets users inspect model parameters, then download and modify them, offering transparency and control that closed platforms do not. The company says this flexibility has attracted more than 18 million developers and researchers, along with 200,000 enterprise customers. Nvidia has already contributed over 500 open models to the Hugging Face environment, a sign of the platform’s strategic value.
Nvidia will pay $11.9 billion to Hugging Face shareholders, plus $1 billion in equity to retain basic employees as they join Nvidia. The acquisition is expected to close in the first half of next year, far above Hugging Face’s $4.5 billion valuation in 2023. Hugging Face previously turned down a $500 million investment from Nvidia, but its need for scale and resources led to a change in direction.
Nvidia CEO Jensen Huang has publicly backed open models, arguing that transparency speeds new idea and improves safety. In a statement, Huang said Hugging Face’s platform would remain open, giving developers and companies worldwide broader access to its models. Nvidia’s recent financial results, with sales more than doubling to over $96 billion last quarter, have not eased investor concerns about whether the company can maintain its lead as competitors pour money into AI infrastructure.
ABC6 and Yahoo Finance reported that in late August 2026, neither Nvidia nor Hugging Face had publicly confirmed the acquisition, and most coverage relied on leaks and secondary reporting. In early September, some outlets reported an official announcement, but direct press releases from the companies were still not widely available.
For Nvidia, the acquisition means more than adding another company. It expands Nvidia’s role as a supplier of hardware and the open platforms that lead AI development. By acquiring Hugging Face, Nvidia gains more control over how AI models are distributed and customized, as well as how they are secured, while the industry divides between open access and proprietary systems.
Hugging Face CEO Clem Delangue, who once resisted Nvidia’s offers, said the decision to sell came from realizing that only a company with Nvidia’s scale could provide the resources and visibility needed to keep open AI competitive with closed alternatives.
The deal comes amid a broader fight over who sets the rules for artificial intelligence. Nvidia’s backing of open-source AI also consolidates its power: the company now controls a platform used by millions, and its next steps will shape whether open-source AI remains a real alternative or becomes another asset for one of the world’s most powerful chipmakers.
