Nvidia is in talks to acquire Hugging Face for more than $13 billion, according to a person familiar with the matter. The discussions have not resulted in a definitive agreement and could be terminated.

Hugging Face, founded in 2016 by Clément Delangue, Julien Chaumond and Thomas Wolf, operates a platform that hosts millions of open‑source AI models and datasets. The company has raised over $235 million in venture funding, including a 2023 round valued at $4.5 billion in which Nvidia participated.

Nvidia reported $18 billion in committed equity investments for the remainder of its fiscal year and holds $47.9 billion in private company stakes, giving it substantial capital for acquisitions. Microsoft previously engaged with Hugging Face, but the two parties are not currently in active negotiations, according to the same source. In 2023, Nvidia offered a $500 million investment that would have valued Hugging Face at $7 billion, a proposal the company declined, citing concerns about a dominant investor influencing its decisions, the Financial Times reported. Hugging Face’s business model relies on neutrality, supporting models and hardware from a range of vendors, including competitors such as AMD and Intel. Ownership by Nvidia could affect that neutrality and potentially steer developers toward Nvidia hardware.

The potential transaction would be one of the largest in the AI sector, but as of now no agreement has been reached and the future of the deal remains unclear.