Nvidia Prepares to Acquire AI Platform Hugging Face for $12.9 Billion

According to reports, semiconductor giant Nvidia is moving toward acquiring artificial intelligence platform Hugging Face for $12.9 billion, following earlier talks based on a $7 billion valuation.

Acquisition Process and Valuation Increase

According to information reported by the Financial Times, the $12.9 billion acquisition price marks a significant increase from the $7 billion valuation in initial negotiations initiated with Nvidia late last year.

Past Investment Talks

During the same period, it was claimed that the AI platform had turned down a $500 million investment from the California-based chipmaker. These details were shared in a report by The Information, citing an anonymous source close to the matter.

Hugging Face's Structure and Business Model

Founded in New York in 2016 by three French entrepreneurs and named after an emoji, Hugging Face defines itself as the community building the future of AI. Unlike competitors such as OpenAI or Anthropic, the company advocates for open models.

Place in the Artificial Intelligence Market

As more companies and software developers look to cut costs, they are increasingly turning to open models, which are often cheaper compared to closed alternatives. Hugging Face reached a valuation of $4.5 billion in its last funding round in 2023.