Nvidia (NASDAQ: NVDA), the designer of GPUs and AI computing platforms, has agreed to buy open-source AI hub Hugging Face for $12.9bn, The Information reported, citing a single unnamed source. Neither company has confirmed the deal.
NVDA shares closed at $209.66 on Wednesday, down 1.59% on the session, before rising 4.71% to about $219.53 in after-hours trading following Nvidia’s quarterly earnings beat and revenue guidance. That after-hours move followed the earnings report, not the Hugging Face deal, which surfaced later that evening.
Hugging Face, founded in New York in 2016, runs a GitHub-like repository where developers share, download and run open-source AI models. Business Insider reported separately that talks between the two companies remained unsigned as of Wednesday night and could still collapse, and that Microsoft had ended its own competing acquisition talks with Hugging Face.
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The reported $12.9bn price is nearly triple Hugging Face’s $4.5bn valuation from its 2023 funding round, backed by investors including Salesforce Ventures, GV and IBM Ventures. It is also well above the $7bn valuation basis for a $500m Nvidia investment offer that Hugging Face rejected in late 2025, according to the Financial Times. The strategic logic reported is that owning the leading open-source model repository would strengthen Nvidia’s hold over developers as OpenAI, Google, Amazon and Anthropic build their own chips to reduce reliance on Nvidia’s hardware.
Siddy Jobe, a fund manager at Eonopolis Exponential Technologies, said: “It is clear that Nvidia wants to be integrated in the entire stack vertically, going from energy to foundational models and also to applications.”
CNBC said it could not independently verify The Information’s report, underlining that the deal remains unconfirmed by either party.
