SANTA CLARA, CALIFORNIA / RankWire.AI / – Nvidia has reached a deal to acquire Hugging Face in a transaction valued at approximately $12.93 billion. The agreement was finalized on September 2, 2026. Nvidia intends to pay around $11.9 billion to Hugging Face shareholders, subject to standard adjustments. Additionally, the deal includes up to about $1 billion in equity-based retention bonuses for qualifying employees. Both companies anticipate the closing of this deal in the first half of 2027, pending regulatory and other customary approvals.
Hugging Face operates a prominent platform serving artificial intelligence models, datasets, software libraries, and developer tools. Nvidia reports that the platform has over 18 million users, including developers, researchers, and content creators. It hosts more than 3 million models and around 500,000 datasets, and provides access to over 1 million applications for AI development. More than 200,000 companies utilize Hugging Face services to explore, test, customize, and deploy AI solutions across various computing environments.
Following the acquisition, both companies stated that Hugging Face will continue supporting multiple models, frameworks, cloud services, and hardware platforms. Developers will not be required to use Nvidia hardware to access the platform. The company will sustain its commitment to open-source and open-weight models from diverse providers. Its services will also maintain compatibility across multiple cloud providers and hardware accelerators. Nvidia confirmed that the platform will keep supporting silicon vendors beyond its own products, consistent with the commitments tied to the transaction.
Existing Open AI Platform Commitments Will Persist
Hugging Face was founded in 2016 by Clément Delangue, Julien Chaumond, and Thomas Wolf. Over time, it expanded into hosting models, datasets, developer libraries, and cloud-based AI tools. The company reached a valuation of $4.5 billion during a funding round in August 2023, which raised $235 million from technology investors. Prior to the acquisition, Nvidia and Hugging Face collaborated on projects connecting developers with Nvidia’s computing infrastructure and software tools.
Nvidia disclosed the acquisition agreement in a Form 8-K filed with the U.S. Securities and Exchange Commission on September 3, 2026. This filing confirms that the deal remains pending and has not yet finalized. Its completion depends on obtaining regulatory approvals and meeting standard closing conditions. Nvidia also outlined operational commitments for Hugging Face post-acquisition, including ongoing access to models and datasets, multi-cloud support, and compatibility with hardware from other semiconductor manufacturers.
Nvidia Aims for Deal Closure in Early 2027
Nvidia already has a significant presence within Hugging Face’s developer community, having published more than 500 models and over 250 open datasets on the platform. The company also provides software libraries and development tools that users can adapt for their AI projects. Hugging Face facilitates model discovery, evaluation, customization, and deployment, serving corporations, research institutions, and independent developers engaged in machine learning, generative AI, and other artificial intelligence applications.
The $12.93 billion Nvidia acquisition of Hugging Face will proceed subject to review until all closing conditions are satisfied. Nvidia anticipates the deal will close during the first half of 2027. Under the announced commitments, Hugging Face will continue supporting developers across various models, clouds, frameworks, and computing platforms. The platform will maintain its multi-cloud and multi-accelerator approach. Until the transaction concludes, Nvidia and Hugging Face will operate as separate entities under the terms of the signed agreement.