Nvidia Acquires Hugging Face for $12.9 Billion
Nvidia has announced its agreement to acquire Hugging Face for approximately $12.9 billion, with the deal expected to close in the first half of 2027. This acquisition comes nearly three years after Nvidia’s previous largest acquisition of Mellanox, which was valued at approximately $7 billion.
Hugging Face, which supports over 18 million users and more than 3 million AI models, was valued at $4.5 billion in a funding round in 2020. Nvidia aims to leverage Hugging Face’s platform to enhance its AI ecosystem, though the company will remain an open platform for all developers, with no Nvidia hardware required. In fiscal 2026, Nvidia reported data center networking revenue of $31.4 billion, up significantly from $8.6 billion two years prior.
Hugging Face’s annualized revenue has recently surpassed $150 million, indicating rapid growth, yet Nvidia’s valuation for this acquisition stands at roughly 86 times Hugging Face’s revenue. This high multiple reflects Nvidia’s strategic vision for integrating Hugging Face into its offerings, paralleling the successful integration of Mellanox into its data center business.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
