Nvidia Agrees £9.5bn Deal to Buy AI Platform Hugging Face

Nvidia has agreed to buy artificial intelligence platform Hugging Face in a deal valued at around $12.9bn (£9.5bn), in one of the company's biggest acquisitions as it looks to expand further into AI software.

Hugging Face, founded in 2016, has become a major platform for developers and researchers working with artificial intelligence. The platform allows users to find, share and test AI models, datasets and software tools.

The acquisition will give Nvidia access to one of the world's largest AI developer communities and strengthen its position in the rapidly expanding open-source AI market.

Nvidia is best known for producing the powerful computer chips used to train and run many of today's artificial intelligence systems. Demand for its technology has grown sharply as businesses around the world invest heavily in AI.

Hugging Face says its platform is used by more than 18 million developers and hosts more than three million AI models. More than 200,000 companies also use the platform, highlighting its importance within the global AI development community.

The two companies already work together, with Nvidia providing computing technology that developers can access through Hugging Face. The acquisition would take that relationship considerably further.

Nvidia has said Hugging Face will remain open to developers and that users will not be required to use Nvidia chips or services. This will be an important part of the deal as Hugging Face has built its reputation around open-source AI.

Open-source AI models can be downloaded, modified and adapted by developers for different purposes. Supporters argue that this approach can make artificial intelligence more accessible to smaller businesses, researchers and start-ups.

The deal comes as competition across the AI industry becomes increasingly intense. Some of Nvidia's biggest customers, including Microsoft, Meta and OpenAI, are also developing their own AI chips, making software and developer platforms increasingly important to Nvidia's long-term strategy.

Under the agreement, Nvidia will pay approximately $11.9bn to Hugging Face investors, with up to another $1bn in stock-based incentives for employees who join Nvidia.

Hugging Face was founded by French entrepreneurs Clément Delangue, Julien Chaumond and Thomas Wolf. The company has grown from its beginnings into a major AI platform offering models, datasets, development tools and cloud services.

The acquisition represents a major step for Nvidia as it moves beyond its traditional hardware business. By bringing Hugging Face into the company, Nvidia would gain not only technology but also a large community of developers helping to shape the future of artificial intelligence.