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Nvidia Has Been in Talks to Buy Hugging Face for More Than $13 Billion
Business Insider • • business
Key Points:
- Nvidia is in talks to acquire Hugging Face, an AI platform known for open-source models, in a deal that could value the company at over $13 billion, though discussions have not yet concluded.
- The chipmaker has been increasing its investments, with $18 billion committed to equity investments this fiscal year and nearly $48 billion already held in private companies.
- Nvidia previously invested in Hugging Face's $235 million funding round in 2023, which valued the company at $4.5 billion, but Hugging Face declined a $500 million investment from Nvidia last year to avoid a dominant investor.
- Acquiring Hugging Face could strengthen Nvidia's position in the AI developer community and increase workloads on its chips, but ownership might challenge Hugging Face's neutrality, as it supports models and hardware from competitors like AMD and Intel.
- Microsoft had also engaged with Hugging Face but is no longer in active talks, according to sources familiar with the matter.
