The deal ramps up Nvidia’s efforts to promote open-weight AI models that pose a competitive threat to OpenAI and Anthropic.

The deal stands to encourage more mainstream adoption of open-weight models, but AI insiders worry Nvidia will subtly influence them to all run on its hardware.

NVIDIA Corporation (NASDAQ:NVDA) has agreed to acquire Hugging Face for approximately $12.93 billion, making it one of Nvidia’s largest acquisitions. The deal gives Nvidia a much stronger position in open-source/open-weight AI,

The acquisition will give Nvidia access to “one of the most important parcels of real estate in the AI market” and promote open-source technology.

The open source platform that was recently hacked by rogue OpenAI agents is now owned by the AI industry leader.

Nvidia buys Hugging Face for $12.9 billion as it spreads bets across Anthropic, OpenAI, and their open-weight competitors.

Nvidia ( NVDA) is in advanced talks to acquire AI company Hugging Face in a transaction that may total about $14B, Bloomberg reported Wednesday, citing people familiar with the matter. An agreement valued at $12.9B could be reached as soon as this week.

Nvidia, a chipmaking giant that is now the world’s most valuable firm, will buy Hugging Face for $13bn. The platform hosts millions of mostly “open” AI models, which users can download and modify. Last year Hugging Face rejected an investment at a $7bn valuation from Nvidia to maintain its independence.