Nvidia Agrees to Buy AI Company Hugging Face
Nvidia announced a deal to buy Hugging Face. Hugging Face is an open-source AI company.
Reports say the deal is valued at about $12.9 billion. Some reports gave slightly higher numbers close to $13 billion.
About $11.9 billion would go to Hugging Face's stockholders. Up to $1 billion would go toward employee retention awards.
Hugging Face reportedly approached Nvidia's CEO Jensen Huang weeks before the deal. Nvidia said Hugging Face would stay open to all AI users.
Developers would not be required to use Nvidia hardware. They could still choose their own models, tools and cloud services.
Hugging Face supports over 18 million users and 3 million models. It also hosts 500,000 datasets and about 1 million applications.
Huang said working with Hugging Face would expand AI access. This would help developers and institutions around the world.
Nvidia had already invested $235 million in Hugging Face in 2023. At that time the company was valued at $4.5 billion.
Key Terms 3
- Hugging Face An open-source AI company that many developers use to build models.
- Jensen Huang The CEO of Nvidia, the company buying Hugging Face.
- open-source Software or tools anyone can use, share or change freely.