Nvidia in talks to acquire hugging face for over $13 billion

NVIDIA is reportedly in serious discussions to acquire Hugging Face, with the potential deal valued at over $13 billion. According to a source, the two companies have been engaging in discussions in recent weeks, though no formal agreement has been reached, and the negotiations remain uncertain. Microsoft has also met with Hugging Face, though no formal talks have begun. Hugging Face, which hosts millions of AI models and datasets for developers, has previously turned down a $500 million investment offer from NVIDIA in late 2023, which would have valued the company at $7 billion. At the time, Hugging Face stated it did not want a dominant investor that could influence its decisions. The acquisition could give NVIDIA a stronger foothold among developers and potentially shift more workloads to its chips. However, it may also threaten Hugging Face’s neutrality, as the platform supports models and hardware from competitors like AMD and Intel. Hugging Face has been growing rapidly, with its annualized revenue growth reaching 50% in just two months, surpassing $150 million. In 2023, the company’s revenue was approximately $70 million, and it reached around $130 million in 2024. The company now serves thousands of organizations and has over 2,000 paying customers. Hugging Face operates on a freemium model, with about 3-5% of users upgrading to paid plans for enhanced capabilities. The platform hosts hundreds of thousands of models and continues to expand its user base and enterprise offerings.