Jensen Huang explains why NVIDIA spent nearly $13 billion to acquire Hugging Face

📅 2026-09-03

Abstract:

Artificial intelligence chip giant NVIDIA officially announced the acquisition of Hugging Face, a well-known open source AI model community and developer platform, for approximately US$12.93 billion. According to the terms of the transaction, Nvidia will pay approximately US$11.9 billion in cash and stock to Hugging Face shareholders and distribute approximately US$1 billion in incentives to Hugging Face employees who join Nvidia.

This transaction became one of the largest acquisitions in NVIDIA's history, marking its ecological landscape is fully penetrating from the underlying AI computing hardware acceleration to the top-level model distribution, evaluation and development ecosystem.

Nvidia founder and CEO Jensen Huang gave an in-depth explanation of the reasons for this blockbuster acquisition in an official blog post. Huang Renxun said that Hugging Face has become an indispensable infrastructure for global AI innovation, with more than 18 million developers, researchers and creators, and more than 3 million AI models, data sets and application projects hosted on the platform. Huang Renxun clearly emphasized that after the acquisition is completed, Hugging Face will continue to maintain its independent and open platform attributes and serve the entire AI ecosystem, and will never close it as Nvidia’s exclusive walled garden.

Huang Renxun explained that the open source AI ecosystem is crucial to promoting technology popularization, security prevention and industry transparency. Developers should have the right to independently choose models, tool architectures, and underlying computing hardware. The core purpose of NVIDIA's acquisition is not to restrict competition, but to fully empower the Hugging Face community through NVIDIA's powerful full-stack accelerated computing system, system optimization experience and network resources, so that developers around the world can deploy and run open weight models with lower thresholds and higher efficiency.

As technology giants such as Google and OpenAI accelerate the development of customized AI chips, Nvidia’s existing advantages in the field of data center accelerators are facing new long-term challenges. Industry analysts point out that by controlling the world's largest open source model distribution center, NVIDIA can not only directly reach tens of millions of developer groups, but also establish extremely high ecological stickiness in the collaborative optimization of open source models and its own hardware, thereby consolidating its dominant position in the next generation of generative AI infrastructure.

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