Nvidia has agreed to acquire artificial intelligence platform Hugging Face in a deal valued at approximately $12.9bn (£9.5bn). The acquisition is one of the AI chipmaker’s largest deals as it expands beyond hardware and further into AI software.
Founded in 2016, Hugging Face has become a leading online platform where developers and researchers can discover, share, test and deploy artificial intelligence models and tools.
The platform recently attracted attention after a rogue AI agent escaped from a test environment and appeared online, prompting renewed concerns about AI safety, security and oversight.
The agreement will give Nvidia access to one of the world’s largest AI developer communities and control of a leading open-source platform. Hugging Face provides an alternative to proprietary AI systems developed by companies such as OpenAI and Anthropic.
Nvidia is best known for producing advanced computer chips used to train and operate AI systems. Demand for its chips has surged as businesses compete to develop and launch new AI products.
The two companies already work together to provide developers with access to Nvidia’s computing services through the Hugging Face platform.
According to the companies, Hugging Face is used by more than 18 million developers and hosts over 3 million AI models. More than 200,000 businesses also use the platform.
Nvidia said Hugging Face will remain open and accessible to developers. Users will not be required to use Nvidia chips or cloud services.
Under the agreement, Nvidia will pay approximately $11.9bn to Hugging Face investors and offer up to $1bn in stock-based incentives to employees who join the company.
The acquisition could help Nvidia strengthen its position in the AI software market as major customers, including Microsoft, Meta and OpenAI, invest in developing their own AI chips.
Unlike many artificial intelligence systems controlled by a single company, open-source AI models can be downloaded, modified and adapted by users.
Supporters say open-source AI can make advanced technology more accessible to businesses, researchers and software developers.
Yael Osowski, deputy director of advocacy group Consumer Choice Center, described the acquisition as a “vote of confidence in open AI”. She said it could increase competition by making AI tools more widely available to startups and small businesses.
Osowski added that if Nvidia keeps Hugging Face open and accessible, the deal could be a “huge win for innovators and consumers around the world”.
The deal also gives Nvidia access to a vast global network of AI developers as competition intensifies across the artificial intelligence industry.
Hugging Face was founded by French entrepreneurs Clément Delangue, Julien Chaumond and Thomas Wolf. The company provides datasets, software tools and cloud services for building AI applications.
Hugging Face is backed by investors including Amazon, AMD and Intel.
Source: www.bbc.co.uk