Politics · Malaysia Bureau
Nvidia to acquire artificial intelligence startup Hugging Face for US$12.9 billion
The acquisition marks a significant consolidation in the artificial intelligence sector, with Nvidia moving to expand its footprint in machine learning tools and platforms. Hugging Face, which recently secured backing from major technology firms, will become part of Nvidia's growing AI infrastructure portfolio.
LSN Malaysia ·
Nvidia has agreed to acquire Hugging Face, a leading artificial intelligence platform specialising in machine learning models and tools, in an all-cash transaction valued at US$12.9 billion.
The deal represents a substantial expansion of Nvidia's capabilities in the AI software and services space, complementing its dominant position in AI hardware and computing infrastructure. Hugging Face operates a widely-used open-source platform that has become central to the development and deployment of large language models and other advanced AI applications.
Hugging Face has emerged as a key player in the AI ecosystem, with its platform serving researchers, developers, and enterprises globally. The company raised US$235 million in funding during 2023, in a round backed by major technology firms including Nvidia, Salesforce, and Alphabet, which valued the startup at US$4.5 billion at that time.
The acquisition reflects the strategic importance of software and platform layers in the AI sector, as major technology companies look beyond hardware to capture value across the entire AI development and deployment chain. Industry analysts expect the transaction to close subject to customary closing conditions and regulatory approvals.