SANTA CLARA, CALIFORNIA / RankWire.AI / – Nvidia has finalized an agreement to purchase Hugging Face in a deal valued at approximately $12.93 billion, with the definitive contract signed on September 2, 2026. Under the terms, Nvidia will distribute around $11.9 billion to Hugging Face shareholders, subject to standard adjustments. Additionally, the deal encompasses up to about $1 billion in equity-based retention bonuses for eligible employees. Both companies anticipate completing the transaction in the first half of 2027, contingent upon regulatory approvals.
Hugging Face operates a prominent platform that hosts a wide array of AI models, datasets, software libraries, and developer tools. Nvidia reports that this platform is utilized by over 18 million developers, researchers, and creators worldwide. It supports more than 3 million models and roughly 500,000 datasets, and offers access to over 1 million applications used in AI development. The platform’s user base includes more than 200,000 companies, which leverage Hugging Face to discover, test, customize, and deploy artificial intelligence systems across various computing environments.
Post-acquisition, both companies stated Hugging Face will continue to support multiple models, frameworks, cloud services, and hardware platforms. Developers will not be required to use Nvidia hardware to access or operate the platform. The company will persist in supporting open-source and open-weight models from various providers, maintaining compatibility with diverse cloud environments and accelerator technologies. Nvidia also confirmed that Hugging Face’s platform will uphold commitments to support silicon vendors beyond Nvidia’s own products as part of the transaction agreement.
Open AI platform commitments will stay in effect
Hugging Face was founded in 2016 by Clément Delangue, Julien Chaumond, and Thomas Wolf. Over time, the company expanded its services to include model hosting, datasets, developer libraries, and cloud AI tools. In August 2023, it reached a valuation of $4.5 billion following a funding round that raised $235 million from tech investors. Prior to the acquisition, Nvidia and Hugging Face collaborated on projects connecting developers with Nvidia’s computing infrastructure and software tools, strengthening their existing partnership.
Nvidia disclosed the deal in a Form 8-K filing with the U.S. Securities and Exchange Commission on September 3, 2026, confirming that the acquisition process is still ongoing and the deal has yet to close. Finalization depends on obtaining regulatory approvals and fulfilling customary closing conditions. The company also outlined operational commitments for Hugging Face following the transaction, including ongoing access to models and datasets, multi-cloud support, and compatibility with hardware from other semiconductor vendors.
Targeted completion set for the first half of 2027
Nvidia already maintains a significant presence within the Hugging Face developer community, having published more than 500 models and over 250 open datasets on the platform. It also provides various software libraries and development tools that users can adapt for their AI projects. Hugging Face facilitates model discovery, evaluation, customization, and deployment, serving a broad spectrum of clients including companies, research institutions, and independent developers engaged in machine learning, generative AI, and other artificial intelligence applications.
The estimated value of Nvidia’s acquisition of Hugging Face at $12.93 billion will remain subject to review until all closing conditions are satisfied. Nvidia anticipates the deal will conclude during the first half of 2027, with Hugging Face continuing to support a diverse range of models, cloud platforms, frameworks, and computing environments under the commitments announced. The platform will maintain its approach of supporting multiple clouds and accelerators. Until the official closing, Nvidia and Hugging Face will continue to operate as separate entities under the terms outlined in the acquisition agreement.