Nvidia is in advanced talks to acquire artificial intelligence startup Hugging Face in a deal that could be worth about $14 billion, Bloomberg News has reported, citing people familiar with the matter.
An agreement valued at $12.9 billion could be reached as soon as this week, according to the report. The transaction could also include a $1 billion retention package for Hugging Face employees.
However, no final agreement has been reached, and the terms or timing of the proposed acquisition could still change.
The deal would represent Nvidia Chief Executive Jensen Huang’s biggest move yet to expand the adoption of artificial intelligence and broaden the company’s customer base.
Hugging Face operates a platform that allows developers to share and access artificial intelligence models, giving Nvidia control of a key hub for open-source AI development if the acquisition is completed.
Nvidia is already an investor in Hugging Face, alongside Alphabet, Amazon, Intel and Salesforce.
Hugging Face was valued at $4.5 billion in a funding round in 2023.
