NVIDIA has agreed to acquire Hugging Face for approximately $12.9 billion, a deal first disclosed by The Information, that would rank as NVIDIA's largest-ever corporate acquisition — surpassing its $6.9 billion Mellanox purchase in 2020. Neither company has confirmed the transaction, and no signed agreement has been reported. The price caps a rapid climb in Hugging Face's valuation, from $4.5 billion in 2023 to a reported asking price above $13 billion weeks before the disclosure.
What Did The Information Report About NVIDIA's Deal to Acquire Hugging Face?
NVIDIA has agreed to acquire the open-source AI platform Hugging Face for approximately $12.9 billion, The Information reported on August 26, citing people familiar with the matterCITE:E1. The same figure, equivalent to roughly NT$409.4 billion, was cited in follow-up wire coverage a day laterCITE:E10.
Have NVIDIA and Hugging Face Confirmed the Acquisition, and Could It Still Fall Through?
NVIDIA and Hugging Face have not officially confirmed the acquisition, and no formal agreement has been signedCITE:E2. Business Insider reported that the two companies have not signed a definitive agreement, leaving open the possibility that the deal could still collapseCITE:E2. Requests for comment sent to NVIDIA and Hugging Face outside standard business hours went unansweredCITE:E11.
What Is Hugging Face, and How Big Is Its Business?
Hugging Face is an open-source AI model platform founded in 2016 and headquartered in New York, often described as the "GitHub of AI"CITE:E3. The company's annual revenue is approximately $150 million, up from about $100 million just two months earlierCITE:E4.
How Has Hugging Face's Valuation Climbed From $4.5 Billion to Over $13 Billion?
Hugging Face's valuation has roughly tripled in under three years, rising from $4.5 billion in 2023 to a reported asking price above $13 billion in August 2026CITE:E5CITE:E7. In 2023, Hugging Face raised $235 million at a $4.5 billion valuation, with NVIDIA, Google, Amazon, Salesforce and IBM participating in the roundCITE:E5CITE:E12. In late 2025, NVIDIA offered to invest $500 million at an implied $7 billion valuation, but Hugging Face rejected the offer because it did not want a single shareholder to hold outsized influence over company decisions — an episode first reported by the Financial Times in JanuaryCITE:E6CITE:E13. Two days before the acquisition report emerged, separate reporting said Hugging Face was seeking a sale at a valuation above $13 billion and had engaged banks to gauge buyer interestCITE:E7.
| Date | Event | Valuation / Amount |
|---|
| 2023 | NVIDIA joins $235M funding round | $4.5B valuationCITE:E5CITE:E12 |
| Late 2025 | NVIDIA offers $500M investment; rejected by Hugging Face | $7B implied valuationCITE:E6CITE:E13 |
| Aug 24, 2026 | Hugging Face reportedly seeks sale, engages banks | $13B+ valuationCITE:E7 |
| Aug 26–27, 2026 | NVIDIA agrees to acquire Hugging Face outright | ~$12.9B (~NT$409.4B)CITE:E1CITE:E10 |
What Would This Deal Mean in NVIDIA's Corporate History?
If completed, the acquisition would be NVIDIA's largest outright corporate purchase, surpassing its $6.9 billion acquisition of Mellanox in 2020CITE:E8. The only larger NVIDIA transaction on record is the roughly $20 billion Groq deal from last December, which involved acquiring assets and personnel rather than the entire companyCITE:E8.
| Deal | Amount | Nature |
|---|
| Mellanox (2020) | $6.9B | Full company acquisitionCITE:E8 |
| Groq (Dec 2025) | ~$20B | Asset and team acquisitionCITE:E8 |
| Hugging Face (pending) | ~$12.9B | Full company acquisitionCITE:E1CITE:E10 |
What Is the Backdrop of Jensen Huang's Ties to Hugging Face on Open-Source Policy?
NVIDIA CEO Jensen Huang led a coalition of 25 companies, including Hugging Face and Meta, in signing an open letter last month urging the US government to support open-source AI modelsCITE:E9. The letter was signed in July 2026, roughly a month before news broke that NVIDIA intends to acquire one of its co-signatories outrightCITE:E9.
What Is NVIDIA's Financial Capacity to Fund This Deal?
NVIDIA has forecast that its revenue will grow 70% in the next fiscal year, signaling continued demand for AI computingCITE:E14. NVIDIA also stated it has committed $18 billion to equity investments for the remainder of fiscal year 2027CITE:E15.
What Does This Mean?
The reported $12.9 billion price sits close to the $13 billion-plus valuation Hugging Face was said to be seeking from banks just two days before the deal surfacedCITE:E7CITE:E1. It also follows two earlier instances in which NVIDIA already held a financial relationship with Hugging Face, first as a co-investor in 2023 and then as a rejected suitor for a minority stake in 2025CITE:E5CITE:E6. The absence of a signed agreement or comment from either party, set against NVIDIA's July open letter with Hugging Face on open-source advocacy, leaves the final terms and outcome of the transaction unconfirmed as of this reportingCITE:E2CITE:E9.
Author's Take・EffectStory 編輯部
The reported $12.9 billion price lands almost exactly where Hugging Face itself was said to be pricing a sale just two days earlier, which suggests NVIDIA moved to close on terms Hugging Face was already shopping rather than negotiating one down. That NVIDIA had already been rebuffed once, in late 2025, when Hugging Face turned down a $500 million minority stake specifically to avoid concentrated shareholder influence, points to a full buyout being the only structure Hugging Face's board would ultimately accept. Two facts already on record keep this unsettled: no signed agreement has been reported, and neither company has commented. The concrete marker to watch next is whether a formal, signed agreement surfaces — until then this is still what The Information first reported, not a closed transaction.