SANTA CLARA, CALIFORNIA / RankWire.AI / – Nvidia has finalized a $12.93 billion deal to purchase the artificial intelligence platform Hugging Face. The firms reached the definitive agreement on September 2, 2026. Nvidia will pay approximately $11.9 billion to Hugging Face shareholders, subject to standard adjustments. Additionally, the agreement includes the potential for up to about $1 billion in equity-based retention awards for qualifying employees. Nvidia anticipates the deal will be finalized in the first half of 2027, following necessary approvals and other closing requirements.
Hugging Face is one of the largest platforms dedicated to sharing AI models, datasets, software tools, and applications. According to Nvidia, its service reaches more than 18 million developers, researchers, and creators globally. The platform hosts over 3 million models and roughly 500,000 datasets, while also providing access to more than 1 million applications. Over 200,000 companies utilize Hugging Face’s services for AI development, evaluation, customization, and deployment across various computing environments.
Both companies confirmed that Hugging Face will keep operating as an open platform even after the acquisition concludes. Developers will still have the freedom to select their models, frameworks, cloud services, and computing platforms. Nvidia hardware will not be mandatory for utilizing Hugging Face’s tools or deploying models via the platform. The company will continue supporting open-source and open-weight models from other developers, maintaining 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 later expanded into hosting models, datasets, developer libraries, and cloud services for AI projects. The company achieved a $4.5 billion valuation in an August 2023 funding round, raising $235 million from tech investors. Nvidia had previously collaborated with Hugging Face prior to the deal through projects connecting developers with Nvidia’s computing resources and software, using 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 is still pending and has not yet been completed. It remains subject to regulatory approvals and customary closing conditions. Nvidia also outlined commitments to ensure the ongoing operation of the Hugging Face platform, including continued access to models and datasets, multi-cloud support, and compatibility with hardware from companies other than Nvidia.
Deal Expected to Close in the First Half of 2027
Nvidia already has a significant footprint within the Hugging Face developer community. The company reports having published more than 500 models and over 250 open datasets on the platform. It also offers software libraries and development tools that users can modify and incorporate into their projects. Hugging Face supports developers through various stages of AI development, including model discovery, testing, customization, and deployment. The platform further provides infrastructure for corporations, research organizations, and independent developers building AI applications.
The acquisition will proceed only after all required conditions are satisfied, with Nvidia expecting completion during the first half of 2027. Under the agreed terms, Hugging Face will continue supporting models and tools from the broader AI ecosystem. Developers will retain freedom of choice regarding frameworks, cloud platforms, inference providers, and hardware. Both companies also committed to preserving Hugging Face’s multi-cloud and multi-accelerator approach once the transaction is finalized.