Nvidia, a leading chip manufacturer, has agreed to acquire the artificial intelligence software platform Hugging Face for approximately $12 billion (£9.57 billion). This move is expected to strengthen Nvidia's standing in the market for open AI models, which users can download, modify, and implement freely, in contrast to the proprietary systems developed by companies like OpenAI and Anthropic.
Hugging Face, already a significant entity in the AI landscape, serves over 200,000 companies. The platform enables developers to collaborate on, test, and share AI tools. The company was previously noted in July when its systems were compromised following a security incident involving OpenAI's agents during a test.
Nvidia CEO Jensen Huang stated that open models allow startups, businesses, universities, and public institutions to leverage advanced capabilities without the need for extensive model training from the ground up. Hugging Face, headquartered in New York, has previously received investment from industry players such as Intel, Advanced Micro Devices, and Amazon.
The acquisition comes as Nvidia's shares saw a 2.2 percent increase. Images created after the deal announcement featured Nvidia CEO Jensen Huang, illustrating AI's application in creative fields.