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Nvidia in Advanced Talks to Acquire AI Startup Hugging Face for $14 Billion, Report Says
Nvidia Corp. (NASDAQ:NVDA) is in advanced discussions to acquire artificial intelligence startup Hugging Face in a deal that could be valued at approximately $14 billion, according to a Bloomberg News report citing people familiar with the matter.
Reported Deal Structure
The potential agreement, which could be finalized as soon as this week, may be structured as a $12.9 billion acquisition price plus a $1 billion retention package for Hugging Face employees, Bloomberg reported. The sources noted that no final agreement has been reached and that the terms or timing of the deal could still change.
The reported valuation represents a significant premium over Hugging Face's last funding round in 2023, which valued the startup at $4.5 billion. Nvidia was a participant in that round, alongside other tech giants including Alphabet, Amazon, Intel, and Salesforce.
AdStrategic Rationale
An acquisition of Hugging Face would be the largest to date for Nvidia CEO Jensen Huang and would mark a major strategic push beyond its core chip business. Hugging Face operates a central platform for the AI community, where developers share, access, and collaborate on open-source AI models and datasets.
By acquiring the platform, Nvidia would gain significant influence over a critical hub in the open-source AI ecosystem. This move would help broaden the company's customer base and accelerate the adoption of artificial intelligence technologies that are often built on top of its hardware.
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