Nvidia in Advanced Talks to Acquire Hugging Face for $14 Billion

Nvidia Nears $14B Deal For Hugging Face - NVIDIA (NASDAQ:NVDA)

Nvidia Corp. (NASDAQ:NVDA) is nearing what could become a roughly $14 billion acquisition of AI platform Hugging Face, extending CEO Jensen Huang's push beyond chips and deeper into the software ecosystem built on top of them. Bloomberg reported Wednesday that Nvidia is in advanced talks to acquire Hugging Face for $12.9 billion, with another roughly $1 billion potentially going toward employee retention. An agreement could come as soon as this week, although no final deal has been reached. Nvidia Expands Beyond Chips Franklin Templeton portfolio manager Sara Araghi told Bloomberg that Nvidia is "backstopping" AI companies that need financing, with Bloomberg characterizing her view of its recent moves as "ecosystem building rather than circular finance." Hugging Face could make that strategy more useful. The Information reported that its compute-rental business could give Nvidia another route into cloud services and potentially help place computing capacity Nvidia has agreed to financially backstop for customers. Why Nvidia Wants Open Models to Win Bloomberg reported that Jensen Huang has been encouraging open models partly to prevent AI from being dominated by a handful of large companies that are both major Nvidia customers and developing their own chips. Trending Prediction traders remain confident in Nvidia itself. Polymarket gives the chipmaker a 76% chance of ending 2026 as the world's largest company, on more than $6.5 million in volume. Chinese developers have meanwhile become major players in open-weight AI. Kalshi traders give a Chinese model a 9.2% chance of reaching No. 1 this year, which would be a major upset for the American frontier companies. Hugging Face Once Chose Independence Nvidia was already a minority investor in Hugging Face after participating in its $235 million Series D in 2023. But the startup later rejected a reported $500 million Nvidia investment at a $7 billion valuation amid concerns about giving one investor too much influence. CEO Clément Delangue warned in 2024 that "concentration of power is the biggest risk in AI." The comment predates the takeover talks, but Nvidia could now control one of the key platforms where developers share and deploy open models. Hugging Face reportedly generates around $150 million in annualized revenue, meaning Nvidia would be paying roughly 86 times sales at the proposed $12.9 billion purchase price. That suggests much of the value lies in Hugging Face's developer community and position at the center of the open-model ecosystem, rather than its current revenue. That position could become harder to preserve under Nvidia ownership. Analyst Brad Gastwirth said "the biggest risk is neutrality," warning that Nvidia would need to avoid undermining Hugging Face's reputation as an open platform. Image: Shutterstock Kalshi and Benzinga have an existing data collaboration agreement. Markets Broadcom Earnings Prediction Market Preview: Will Hock Tan Talk 'Competition'? Broadcom reports earnings Wednesday as traders bet Hock Tan discusses OpenAI, Google and Anthropic, but give "competition" just 28% odds. 3 min read Read this article Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Why is NVIDIA stock surging today? By Investing.com

Investing.com -- NVIDIA stock surged nearly 3.9% in morning trading today after Bloomberg News reported that the company is in advanced talks to acquire Hugging Face, the dominant open-source AI platform, in a deal valued at approximately $14 billion -- comprising a roughly $12.9 billion acquisition price and an additional $1 billion employee retention package -- with an agreement potentially set to be formalized as early as this week. The proposed deal would give NVIDIA control over a platform that hosts millions of AI models and datasets and serves as a critical gateway through which developers build and deploy open-source AI applications, effectively extending the company's reach far beyond its core GPU hardware business and into the software and model distribution layers of the AI stack. Adding fuel to the rally, Dell Technologies reported blowout fiscal Q2 results after the prior session's close -- posting revenue up 58% year-over-year to nearly $47 billion on record AI server demand and raising its full-year revenue guidance to $192 billion -- a result that reinforced robust spending on AI infrastructure and lifted sentiment across the entire AI supply chain. Separately, Robert W. Baird analyst Tristan Gerra reaffirmed NVIDIA as one of the firm's top large-cap ideas today, citing the company's continued AI compute leadership and growing share in the inference market, keeping Wall Street's overwhelmingly bullish consensus intact. These company-specific catalysts are unfolding against a constructive broader market backdrop, with the S&P 500 gaining 0.5%, the Dow Jones rising 0.6%, and the Nasdaq adding 0.3% during today's session, as investors broadly returned to risk assets. The positive macro tone complemented NVIDIA's own strong fundamental momentum, which includes its recent fiscal Q2 FY2027 earnings beat -- revenue up 106% year-over-year to $96.2 billion with Q3 guidance of approximately $108 billion -- that continues to underpin confidence in the stock. Taken together, the Hugging Face acquisition news, strong AI infrastructure demand signaled by Dell's results, and ongoing bullish analyst coverage have combined to push NVIDIA shares meaningfully higher today, as investors interpret the potential deal as a transformative step that could cement the company's position across the full AI value chain -- from silicon to software to model deployment. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Nvidia could seal $14 bln Hugging Face deal this week, Bloomberg reports By Investing.com

Investing.com-- Nvidia (NASDAQ:NVDA) is in advanced talks to acquire artificial intelligence startup Hugging Face in a deal that could be worth about $14 billion, Bloomberg News reported on Wednesday, citing people familiar with the matter. Get real-time updates on market-moving news with InvestingPro -- at 55% off now An agreement valued at $12.9 billion could be reached as soon as this week, the report said, adding that the transaction could include a $1 billion retention package for Hugging Face employees. No final agreement has been reached and the terms or timing could still change, Bloomberg reported. The acquisition would mark Nvidia Chief Executive Jensen Huang's biggest move yet to expand the adoption of artificial intelligence and broaden the company's customer base. Hugging Face operates a platform where developers share and access AI models, giving Nvidia control of a key hub for open-source AI development. Nvidia has backed Hugging Face alongside Alphabet, Amazon, Intel and Salesforce. The startup was valued at $4.5 billion in a 2023 funding round.