Nvidia is acquiring Hugging Face for nearly $13 billion
One of the major AI deals of the year: the largest AI chip manufacturer is purchasing the most popular platform for hosting AI models.
The final deal amount is $12.93 billion. This is how much Nvidia has agreed to pay to acquire Hugging Face.
Three years ago, Hugging Face was valued at a significantly lower amount, $4.5 billion. Back then, a group of companies led by Google, Amazon, and Nvidia invested $235 million into the service's development.
The deal’s purpose has not been disclosed. The platform itself does not generate comparable revenues. According to The Information, the service's annual revenue is around $150 million.
Hugging Face was launched in 2016 as a platform where AI developers can share their work with a wide user base. It can be compared to GitHub due to its large library of LLM packages with open-source code.
"Together, we will scale the platform, enhance its infrastructure, and provide broader access to AI for developers and organizations worldwide," said Jensen Huang, CEO of Nvidia, regarding the deal.
Nvidia assures that Hugging Face will remain an open platform, allowing developers to choose models and frameworks that suit their needs.