Nvidia wants to buy Hugging Face in $13 billion blockbuster AI deal

Date:
Thu, 27 Aug 2026 09:12:20 +0000

Description:
Reports are circulating that Nvidia could be set to acquire Hugging Face in a $12.9 billion takeover.

FULL STORY ======================================================================Copy link Facebook X Whatsapp Reddit Pinterest Flipboard Threads Email Share this article 0 Join the conversation Follow us Add us as a preferred source on Google Newsletter Subscribe to our newsletter Nvidia is reportedly preparing to acquire Hugging Face for $12.9bn A 2023 investment round valued the
company at $4.5bn Nvidia is on a roll of investing heavily in other companies Nvidia has reportedly spent the past couple of weeks actively engaging with Hugging Face to explore an acquisition deal worth an estimated $12.9 billion, according to Business Insider reporting, citing an unnamed source familiar with the matter.

To date, the companies are yet to reach an agreement, but with the current valuation speculations, it would make a Hugging Face acquisition one of Nvidia's largest acquisitions to date. Importantly, this wouldn't be the chipmaker's first run-in with Hugging Face it took part in a $235 million funding round in 2023. At that time, Hugging Face's valuation was around $4.5 billion - making today's valuation nearly three times higher. Latest Videos From TechRadar Watch full video here: Nvidia and Hugging Face While this may be one of Nvidia's biggest acquisitions to date, it's just one of a growing number, as the company recently admitted it had $18 billion committed to equity investments for the rest of the financial year, and it already holds $47.9 billion in private company stock.

However, there's still a shadow over the potential Nvidia acquisition, with Hugging Face previously turning down a $500 million Nvidia investment over concerns that a single shareholder could have such a big influence. You may like Nvidia could invest $250bn in OpenAI's 10Gw Ohio data center Nvidia's market cap dropped by almost $330 billion in 24 hours - here's why Netflix acquires Ben Afflecks AI startup InterPositive for $587 million

The high valuation also makes the prospective acquisition a costly one at around 86x Hugging Face's annualized revenue ($150 million), Nvidia would be paying a premium for the platform's strategic position and existing relationships, against a backdrop of ongoing investments in models and development tools.

Regulator scrutiny might also question whether competing chipmakers and cloud service providers could be put at a disadvantage, particularly if Nvidia imposes hardware and software restrictions on the platform after a takeover. Are you a pro? Subscribe to our newsletter Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed! Contact me with news and offers from other Future brands Receive email from us on behalf of our trusted partners or sponsors By submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over.

Neither Nvidia nor Hugging Face responded to requests for comment. Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds.



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