NVIDIA Corporation announced a proposed $12.93 billion acquisition of Hugging Face, aimed at enhancing its leadership in artificial intelligence (AI) by expanding beyond chips into the open-model ecosystem. The deal will provide NVIDIA access to a platform with over 18 million developers and researchers, alongside more than 3 million models and 1 million applications. NVIDIA’s AI revenues reached $96.22 billion in Q2 of fiscal 2027, a 106% increase year over year, with data center revenues rising 117% to $89.02 billion.
With Hugging Face, NVIDIA plans to merge its AI infrastructure with an extensive developer community and a large library of datasets, which may boost demand for computing as businesses increasingly adopt AI solutions. Post-acquisition, Hugging Face will maintain its open platform, supporting various models and cloud services.
In the competitive landscape, AMD and Intel are also enhancing their AI offerings, with AMD’s Data Center revenues rising 107% year over year to $6.7 billion in Q2 2026, and Intel’s AI revenues surging 59% to $6.26 billion. Both companies are positioning themselves as significant challengers as NVIDIA seeks to solidify its AI ecosystem through this acquisition.
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