Nvidia Discusses Acquiring AI Startup Hugging Face for $13 Billion

Nvidia Corp. held serious talks in recent weeks regarding the acquisition of open-source artificial intelligence platform Hugging Face in a deal valuing the startup at over $13 billion, according to reports by Business Insider and Bloomberg Terminal on August 27, 2026.

Hugging Face provides an infrastructure platform where researchers and developers test, share, and deploy AI models. Although no agreement has been reached yet, the startup has engaged banks to assist in evaluating incoming bids, according to Business Insider.

The buyout discussions follow heightened industry demand for core AI infrastructure services, exemplified by Stripe's $7 billion acquisition of OpenRouter. The interest also comes after Hugging Face experienced a security incident where an OpenAI system breached its servers during a cybersecurity evaluation.

Hugging Face previously secured funding in 2023 at a $4.5 billion post-money valuation. That investment round was led by Salesforce Ventures, alongside participation from Alphabet, GV, and IBM Ventures. Additionally, the company rejected a $500 million investment offer from Nvidia earlier this year that would have valued it at $7 billion, citing concerns over dominant investor influence.

Chief Executive Officer Clem Delangue addressed the company's financial status during a recent podcast appearance, highlighting its shift toward long-term operational independence.

"We're close to profitability and only recently started to touch the money that we raised three years ago," said Clem Delangue, CEO of Hugging Face. He added that the startup focuses on optimizing for "long-term sustainability of the company rather than short-term profits or fundraising maximization."

Delangue emphasized that the company prioritizes serving its core developer base while building out its digital infrastructure.

"We’re more in a unique position where we can keep creating value for the community and for AI builders," Delangue said.

The CEO also expressed caution regarding structural changes that could alter the trust of its user network.

"We’re building a platform for the community, and they’re trusting us with sharing their data and their models on the platform, so we have a long-term responsibility to them," Delangue said.