Nvidia to Acquire Hugging Face for $12.9 Billion, 80x Revenue

Nvidia is reportedly set to acquire Hugging Face for $12.9 billion, approximately 80 times its annual revenue. Hugging Face generates around $150 million per year and is nearing profitability, according to Clem Delangue. The deal comes as closed entities like OpenAI and Anthropic are reducing their reliance on Nvidia hardware, while the company has committed $26 billion over five years to support open source initiatives.

OpenAI, Anthropic, and Google Seek Independence from Nvidia Hardware

Closed providers like OpenAI and Anthropic are looking to limit their dependence on Nvidia hardware. OpenAI is developing custom chips with Broadcom, has signed a $1 billion contract with Cerebras, and has gained access to AMD chips. Anthropic is also working on its own AI chip, and Google has been developing its own chips for some time.

Nvidia Targets $12.9 Billion for Hugging Face, or 80x Revenue

Nvidia is reportedly set to acquire Hugging Face for $12.9 billion. This amount would represent about 80 times the platform's annual revenue. Hugging Face offers open-source AI models and provides cloud services. According to its CEO Clem Delangue, the company has an annual revenue of around $150 million and is approaching financial balance. The platform is also well-known and appreciated by developers.

Nvidia Continues Its Open Source Strategy with Hugging Face

Nvidia had already planned to invest $26 billion over five years to promote the development of open-source AI models. The company would be able to expand Hugging Face's cloud business and turn it into a sort of OpenRouter for open-weight models. Such a move would push the company to procure a larger number of Nvidia chips.