Nvidia on the Verge of a $12.9B Acquisition of Open-Source AI Hub, Hugging Face

In a potentially monumental AI deal of 2026, Nvidia is said to be on the brink of acquiring Hugging Face—the premier open-source platform for AI developers globally—for an estimated $12.9 billion. This news comes from a report by The Information, with a separate confirmation from a source close to the matter to CNBC, stating that an acquisition by Nvidia has been part of “ongoing and recent talks,” although a final agreement is yet to be signed.

Since its inception in 2016, Hugging Face has evolved into one of the most popular hubs for developers to share, download, and collaborate on open-source AI models and datasets. The deal signifies a significant increase in valuation from the company’s last funding round in 2023, when it was valued at $4.5 billion—almost three times less than the current proposed price. Interestingly, Nvidia was part of the $235 million funding round in 2023, alongside tech giants Google, Amazon, Intel, and Qualcomm.

Should the acquisition be finalized, Nvidia will gain a dominant position in the open-source AI ecosystem, broadening its influence beyond chips to the software and model-sharing layer that millions of developers depend on daily. With a reported $96.2 billion in revenue for Q2 2026, a 106% increase year-over-year, Nvidia clearly has the financial capacity to make such significant strategic moves. As of now, neither Nvidia nor Hugging Face has released an official statement.

Source: CNBC — Nvidia agrees to buy Hugging Face for $12.9 billion, report says