Nvidia Corp. is in advanced negotiations to acquire AI startup Hugging Face for approximately $14 billion. An agreement, potentially reaching $12.9 billion, could be finalized soon and may include a $1 billion retention package for Hugging Face employees. The acquisition would enhance Nvidia’s influence in AI, allowing it to control a key platform for sharing and showcasing AI models.
Nvidia’s CEO Jensen Huang aims to promote open-source models, countering the dominance of major companies in AI technology. Hugging Face, founded in 2016, had a valuation of $4.5 billion in a prior funding round and offers a platform for sharing AI models. Previous partnerships include backing from companies like Google and Amazon.
Despite not finalizing the deal, Nvidia has made several significant acquisitions in the past year. The company, which is a leader in AI chip manufacturing, recently provided a strong sales forecast, anticipating a 70% revenue growth for fiscal 2028.
