Nvidia nears $12.9B Hugging Face acquisition, about 86x revenue
sanjaykalra · x · 2026-09-03
The Information reports Nvidia has agreed to buy Hugging Face for $12.9 billion; Business Insider notes talks haven't produced a signed deal and could still fall apart.
- Hugging Face has roughly $150M in revenue, implying an 86x revenue multiple; it previously turned down a $500M Nvidia investment nine months ago over concerns a dominant investor could compromise the platform's neutrality—a neutrality premium that just rose 26x.
- Founded in 2016, Hugging Face is the leading hub for sharing open source AI models, giving Nvidia a key foothold in open source AI.
- The rationale: defending Nvidia's chip dominance as open source models race to catch up with closed systems from Anthropic and OpenAI.
Related event: Nvidia Officially Acquires Hugging Face for $12.93 Billion(54 posts)→
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