Nvidia Agrees to Buy Open Source AI Platform Hugging Face For $12.9 Billion

The Information says Hugging Face generates roughly $150 million in annualized revenue, valuing the deal at about 80× forward revenue.

Nvidia is paying for strategic control, not current sales. Strong open models help protect demand for its GPUs as OpenAI, Anthropic, Google and other major customers develop competing AI chips.

Hugging Face could also revive Nvidia’s cloud ambitions by connecting millions of developers, models and workloads directly with Nvidia compute.

Smart and huge deal.