Conflicting reports put Nvidia’s Hugging Face acquisition in doubt, with valuations above $13 billion and no deal confirmed by either company.
Nvidia (NVDA) is at the center of conflicting reports about a possible acquisition of Hugging Face, the AI platform where developers and researchers share, find, test, and deploy models and datasets. Business Insider reported on August 26 that Nvidia and Hugging Face had held acquisition discussions in recent weeks, with a deal valuing Hugging Face at more than $13 billion.
Citing a person familiar with the matter, the report said no deal had been reached, and the talks could still fall apart. A separate account attributed to The Information reported that Nvidia had agreed to buy Hugging Face for $12.9Bn, though neither company has confirmed a transaction.
The reports describe materially different situations: ongoing discussions in one account and an agreed deal in the other. TechCrunch reported on August 24 that it was unclear which company or companies had approached Hugging Face with offers valuing it at $13Bn or more.
The startup was reportedly in talks with banks to help evaluate bids. Until Nvidia or Hugging Face confirms the status of any transaction, the reported prices and the state of the talks remain unconfirmed.
Nvidia Hugging Face Deal Reports: Why the $12.9Bn and $13Bn-Plus Figures Differ
The difference between the reported values is less important than the difference in how the accounts characterize the situation. Business Insider described Hugging Face as fielding takeover interest while holding acquisition conversations with Nvidia. The Information reported that Nvidia had agreed to buy Hugging Face. Neither company has confirmed either account.
Key terms of any possible transaction have not been disclosed in the reporting provided. The reported accounts do not establish what a deal would include beyond their differing valuations and descriptions of its status. That leaves the $12.9Bn and more-than-$13-Bnfigures as reported values rather than confirmed terms.
Nvidia and Hugging Face already have a relationship. Business Insider reported that Nvidia participated in Hugging Face’s $235M funding round in 2023, valuing the startup at $ 4.5Bn.
Hugging Face also turned down a $500M investment offer from Nvidia earlier this year that would have valued it at $7Bn, according to reporting by the Financial Times. The company said at the time that it did not want a single dominant investor to sway decisions. A reported valuation above $13Bn would be substantially higher than that earlier $7Bn valuation.
Why Hugging Face Matters in Open-Source AI
Hugging Face operates a platform used by developers and researchers to share, find, test, and deploy AI models and datasets. Business Insider described the company as being at the center of the open-source AI ecosystem, hosting millions of models and datasets that developers can build on. The platform’s role gives it a connection to developers working with open-source AI tools.
Hugging Face CEO Clem Delangue said on a TechCrunch Equity podcast episode that the company was close to profitability and had only recently begun using money raised three years earlier. He characterized the company’s focus as long-term sustainability rather than short-term profits or fundraising maximization.
Delangue also discussed Hugging Face’s responsibility to the community that shares data and models through the platform. Those comments underscore the importance of the community and platform mission in any discussion of a potential sale.
The reported interest arrives amid broader attention on companies providing AI infrastructure services. TechCrunch cited Stripe’s reported $7 billion acquisition of AI gateway startup OpenRouter as an example.
Business Insider also noted that Hugging Face supports models and hardware from across the industry, including Nvidia competitors AMD (AMD) and Intel (INTC). That breadth of support is part of the platform’s neutrality and would be relevant to how users view any change in ownership.
What the Reports Mean for Nvidia Investors
The reported values suggest significant potential for an acquisition, but no deal has been confirmed. Business Insider noted that Nvidia has $18Bn for equity investments this fiscal year and $47.9Bn in private companies, providing context but not confirming an agreement with Hugging Face.
There are conflicting reports: one claims talks are ongoing and could fail, while another states an agreement has been reached. Hugging Face previously declined Nvidia’s investment offer, citing concerns about a dominant investor’s influence.
Investors should view the figures of $12.9Bn and $13Bn as unconfirmed. Clarity will come with confirmation from Nvidia or Hugging Face, or further reporting to address the discrepancies. Until then, the Nvidia-Hugging Face potential acquisition remains uncertain.
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