Why Clément Delangue Sold Hugging Face to Nvidia After Turning It Down

Nvidia to acquire Hugging Face for $12.9B, expanding its compute access but raising concerns about platform neutrality. Both companies assert Hugging Face will remain independent and hardware-agnostic. The deal may impact AI model development and supply chain security, according to industry experts.

Hugging Face, a French AI startup, pivoted to a B2B model and became a leading platform hosting over 2 million AI models. It focuses on open-source models, contrasting with closed models from OpenAI, Anthropic, and Google. The company recently accepted a takeover by Nvidia, which may increase Nvidia's investment in Europe. French Economy Minister Roland Lescure expressed concerns about European startups being acquired by foreign entities.

Nvidia has agreed to acquire Hugging Face for $12.9 billion, highlighting its focus on open-source technology and AI models. The deal is one of Nvidia's largest and aims to counter potential chip demand slowdowns. Nvidia's shares slightly declined post-announcement.

Nvidia plans to acquire Hugging Face for $22 billion, aiming to strengthen its position in open-weight AI models. The deal complements Nvidia's investments in neoclouds, potentially reinforcing its role in AI infrastructure. Nvidia's CEO assured developers that the acquisition won't force them to use Nvidia models or infrastructure. The deal has already positively impacted Nvidia's stock price, with shares up 1.5% this week, adding over $80 billion to its market cap.

Nvidia plans to acquire Hugging Face, a leading open-source AI platform, for $12.9 billion. The deal, expected to close in early 2027, aims to strengthen Nvidia's position in the open AI market. Hugging Face hosts millions of AI models and datasets, with over 18 million developers and 200,000 enterprises using its platform. Nvidia's CEO Jensen Huang emphasized the importance of open-source AI for innovation and security.

British police are investigating the theft of 70,000 pints of Guinness worth $155,000. Nvidia has agreed to acquire AI software platform Hugging Face for $13 billion, highlighting its focus on open-source AI models. The deal follows a recent security breach involving Hugging Face's data systems.