Report: Nvidia to acquire AI model repository Hugging

What happened

9 billion. The acquisition could help the hardware giant expand and fortify its deep integration with the wider AI industry. Among other things, Hugging Face is a cloud repository for AI models, similar in some respects to what GitHub is for conventional computer software.

This could help get that engine running again. Hugging Face’s business is reportedly not yet profitable, but the fact that it has become the de facto place to store, download, or work on open-weight models makes it highly strategically relevant at this moment, regardless of its current bottom line.

The acquisition is particularly important for Nvidia, as OpenAI, Anthropic, and other frontier labs have begun investing in their own specialized hardware on which to train and run those models, seeking vertical integration and freedom from Nvidia’s leverage. With Hugging Face in its portfolio, Nvidia may take measures to encourage that side of the market to continue relying on its hardware.

Why it matters

Developers and researchers search for models that meet certain criteria, download and run them, and fine-tune them into different variants that then get uploaded back up to Hugging Face. The deal is not finalized, so it could still run into trouble ahead, but both parties appear to be actively pursuing it, according to a report from The Information, which cites one person with knowledge of the matter.

Another source confirmed to CNBC that talks are underway. Hugging Face reportedly had other companies trying to buy it, too, including Salesforce. Nvidia had invested in Hugging Face in the past, but it wasn’t the only one—Google and Microsoft had also invested. The company was founded in 2016.

Nvidia and several other tech companies have publicly supported the role of open-weight models as alternatives to the proprietary closed-frontier models trained by companies like OpenAI and Anthropic. Nvidia has even released its own family of open models, called Nemotron. By acquiring Hugging Face, Nvidia gains significant influence in that ecosystem. Additionally, Nvidia previously had plans for its own cloud AI business but had trouble getting it off the ground.

What to watch

Hugging Face has been best-known for hosting large language models, but it has increasingly invested in the types of models used in robotics and other physical AI applications. Nvidia is already one of the biggest players in that space, so the acquisition may open opportunities there in the future as well.