The deal would give Nvidia control of the leading open-source AI platform and a strong foothold in model distribution.

Nvidia has agreed to acquire Hugging Face for $12.9 billion, according to a source familiar with the matter. The Information first reported the deal on Wednesday night, but Business Insider notes that no signed agreement exists yet and talks could still fall apart.

Hugging Face, founded in 2016, has become the most popular hub for developers to share and download open-source AI models. Nvidia has already invested tens of billions of dollars in building its own open-source AI models, and acquiring Hugging Face would give the chipmaker a strong foothold in the broader open-source ecosystem.

For builders and operators, this deal would place Nvidia at the center of both model distribution and AI hardware. That concentration of power could shape how open-source models are developed and deployed, and it could increase pressure on closed AI labs like OpenAI and Anthropic that are already working to reduce their reliance on Nvidia chips.

Watch whether a signed agreement emerges. Business Insider reports that talks have not produced one yet and could still fall through, though Nvidia has not responded to requests for comment. Nvidia’s silence is notable because the company has previously acted quickly to correct inaccurate reports.

What matters

• Nvidia has agreed to acquire Hugging Face for $12.9 billion, according to The Information.
• Acquiring Hugging Face would give Nvidia control of the leading open-source AI hub.
• Watch for a signed agreement, as talks could still fall apart before the deal closes.

Why it matters

Watch for a signed agreement, as talks could still fall apart before the deal closes.

This GenAI News article was prepared in original wording using reporting and materials published by TechCrunch AI. Source reference: https://techcrunch.com/2026/08/26/nvidia-closes-in-on-hugging-face-acquisition/.

Drafted by the GenAI News review pipeline.