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This acquisition would integrate the leading open-source model hub directly into Nvidia's hardware ecosystem, potentially securing developer loyalty against competitors building proprietary chips. By controlling both the foundational models and the inference hardware, Nvidia aims to counter the trend of major cloud providers verticalizing their AI stacks. The deal represents a strategic pivot from pure chip manufacturing to a vertically integrated platform for the open-source AI community.
Nvidia closes in on Hugging Face acquisition

Nvidia has reportedly agreed to buy Hugging Face, the popular open source AI hub, for $12.9 billion in a move that would let Nvidia both protect its chip empire and jump back into the cloud business.
Nvidia has agreed to buy Hugging Face for $12.9 billion, The Information reported Wednesday night, citing a source familiar with the matter. Business Insider, which first reported over the weekend that Hugging Face was fielding takeover interest, reported Wednesday night that the talks — which would value the company at more than $13 billion — had not yet produced a signed agreement and could still atomize. TechCrunch reached out earlier to both Nvidia and Hugging Face for comment, and neither has yet responded. (Nvidia’s silence is particularly noteworthy here as the company has moved quickly in the past to address reports it…
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