VTechFusion Team
VTechFusion Technologies
Nvidia announced on September 3, 2026 that it has agreed to acquire Hugging Face, the open-weight AI platform, for approximately $12.93 billion. The deal also includes an equity-based retention program worth as much as $1 billion for Hugging Face employees who join Nvidia.
Hugging Face's Scale
- More than 18 million developers, researchers and creators use Hugging Face to share more than 3 million models
- More than 200,000 companies use the platform to discover and deploy AI
Nvidia's Stated Commitment to Openness
Nvidia said Hugging Face will remain 'an open platform for the entire AI ecosystem,' continuing to support open-weight and open-source AI models. Nvidia CEO Jensen Huang stated that open models 'strengthen safety and cybersecurity, accelerate innovation and diffusion, and enable sovereignty,' allowing developers, startups, universities, industries and countries to build with, customize and benefit from AI.
How This Deal Ranks Historically for Nvidia
This acquisition is Nvidia's second-largest on record, trailing only its roughly $20 billion purchase of assets from chipmaker Groq in December. It significantly exceeds Nvidia's previous largest deal prior to that, the nearly $7 billion acquisition of Israeli chipmaker Mellanox in 2019.
Timeline and What This Means for AI Developers
The deal is expected to close in the first half of 2027, pending regulatory approval. For the large developer and enterprise community already built around Hugging Face's model hub, the practical questions worth watching over the coming months are whether Nvidia's stated commitment to keeping the platform open translates into unchanged terms of access and neutrality toward non-Nvidia hardware, given Nvidia's direct commercial interest in AI infrastructure and chips.
Frequently Asked Questions
How much is Nvidia paying for Hugging Face?
Nvidia agreed to pay approximately $12.93 billion for Hugging Face, plus an equity-based retention program worth up to $1 billion for Hugging Face employees joining Nvidia, announced September 3, 2026.
Will Hugging Face remain open after the Nvidia acquisition?
Nvidia has stated Hugging Face will remain 'an open platform for the entire AI ecosystem,' continuing to support open-weight and open-source AI models, though this commitment will be tested as the deal moves toward its expected close in the first half of 2027.
How does this rank among Nvidia's largest acquisitions?
It's Nvidia's second-largest acquisition on record, behind its roughly $20 billion purchase of assets from Groq in December 2025, and well ahead of its previous largest deal, the nearly $7 billion acquisition of Mellanox in 2019.
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