SANTA CLARA, CALIFORNIA / RankWire.AI / – Nvidia has entered into a definitive agreement to acquire the artificial intelligence platform Hugging Face for $12.93 billion. The deal was finalized on September 2, 2026. Nvidia will compensate Hugging Face shareholders approximately $11.9 billion, subject to customary adjustments. Additionally, the transaction includes the potential for up to about $1 billion in equity-based retention awards for eligible employees. Nvidia anticipates that the deal will be finalized in the first half of 2027, following necessary approvals and closing conditions.
Hugging Face operates one of the largest AI model-sharing platforms, offering datasets, software tools, and applications. Nvidia reports that the platform reaches over 18 million developers, researchers, and creators worldwide. It hosts more than 3 million models and roughly 500,000 datasets, along with access to over 1 million applications. More than 200,000 businesses utilize Hugging Face services for AI development, testing, customization, and deployment across various computing environments.
Following the transaction, Hugging Face will continue to function as an open platform. Developers will retain the freedom to select their preferred models, frameworks, cloud providers, and computing platforms. Nvidia hardware will not become mandatory for using Hugging Face tools or deploying models via the platform. The company will also uphold support for open-source and open-weight models created by other developers. Its services will sustain compatibility with multiple clouds, inference providers, and hardware accelerators, including those supplied by other semiconductor firms.
Hugging Face to Maintain Open Development Approach
Founded in 2016 by Clément Delangue, Julien Chaumond, and Thomas Wolf, Hugging Face has grown into a hub for model hosting, datasets, developer libraries, and cloud services related to artificial intelligence projects. The company achieved a valuation of $4.5 billion during a funding round completed in August 2023, which raised $235 million from technology investors. Prior to the acquisition, Nvidia collaborated with Hugging Face through projects that linked developers to Nvidia’s computing resources and software, utilizing familiar Hugging Face tools.
The agreement was disclosed by Nvidia in a Form 8-K filed with the U.S. Securities and Exchange Commission on September 3, 2026. The filing states that the acquisition remains pending and has not yet been finalized. It continues to require regulatory approvals and customary closing conditions. Nvidia also outlined commitments regarding Hugging Face’s future operations, including ongoing access to models and datasets, multi-cloud support, and compatibility with hardware from other semiconductor companies.
Expected Closure in Early 2027
Nvidia already maintains a significant presence within the Hugging Face developer community. The company reports having published over 500 models and more than 250 open datasets on the platform. It also offers software libraries and development tools that users can adapt and incorporate into their projects. Hugging Face supports developers across all phases of AI development, from model discovery and testing to customization and deployment. The platform also supplies infrastructure for businesses, research organizations, and individual developers working on artificial intelligence applications.
The acquisition by Nvidia is contingent upon the fulfillment of all regulatory and contractual requirements, with a goal of completing the process during the first half of 2027. Under the terms announced, Hugging Face will continue to support models and tools from the broader AI ecosystem. Developers will still have the option to choose frameworks, cloud platforms, inference providers, and hardware from various suppliers. Both companies have committed to preserving Hugging Face’s multi-cloud and multi-accelerator model after the deal closes.