Nvidia plans to acquire Hugging Face for nearly $13B

Nvidia announced plans to acquire AI platform Hugging Face in a deal valued at approximately $12.9 billion, aiming to expand its presence in open-source AI models. The transaction will see Nvidia pay about $11.9 billion to shareholders, with up to $1 billion in retention awards for employees, and is expected to close in the first half of 2027. The acquisition seeks to strengthen Nvidia's AI capabilities amid competition from companies developing their own chips, while ensuring Hugging Face remains an open-source platform.

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