NVIDIA Is Buying Hugging Face for $12.9 Billion
On September 2, 2026, NVIDIA signed a definitive agreement to buy Hugging Face, the platform where developers share and download AI models, for about $12.93 billion. It confirmed the deal publicly the next day. Updated October 30, 2026: the US Department of Justice is now asking questions about the deal. Here are the terms, what NVIDIA promised about openness, and what regulators are looking at.
⚡ Quick facts
- Price: about $11.9 billion to Hugging Face stockholders plus a retention programme of up to about $1 billion for staff, per NVIDIA's 8-K
- Signed: September 2, 2026 (definitive agreement); announced September 3
- Expected close: first half of 2027, subject to regulatory approvals
- Openness pledge: NVIDIA says users can keep uploading and downloading models and datasets, and other chip vendors stay supported
- Regulators: the US DOJ is examining the deal's effect on AI competition, Reuters reported on October 28–29, 2026
What Hugging Face is
Hugging Face is the main public hub for open AI models. Per TechCrunch, it hosts about 3 million models, about 500,000 datasets and about 1 million apps, used by more than 18 million developers. When a lab releases open weights, such as Meta's Llama or DeepSeek's models, the files usually land there first. That makes it a distribution point for the whole open-model ecosystem, not just a website.
The deal terms
NVIDIA's Form 8-K sets out the structure: roughly $11.9 billion goes to Hugging Face stockholders, subject to adjustments, and up to about $1 billion is reserved as an equity retention programme for employees who join NVIDIA. Closing needs regulatory approval and is expected in the first half of 2027. Per CNBC, Hugging Face CEO Clem Delangue approached Jensen Huang weeks before the deal. In 2025, Hugging Face had reportedly turned down a smaller NVIDIA investment.
What NVIDIA promised about openness
The filing commits NVIDIA to keep the platform open "consistent with Hugging Face's existing practices": users can upload and download the models and datasets they choose, and other silicon vendors remain supported. Huang also said NVIDIA compute will not be required to build on or deploy through Hugging Face. These are NVIDIA's own commitments. The filing describes no outside body that would enforce them.
Why the DOJ is looking at it
Per reporting summarised by The Next Web and DigiTimes, the Justice Department is asking whether owning Hugging Face would give NVIDIA control over a key AI distribution point, and whether it could use the platform to disadvantage rival chipmakers. The questions reportedly sit inside a wider review of NVIDIA's acquisitions and sales practices. An inquiry is not a finding of wrongdoing and does not mean a lawsuit will follow. NVIDIA has been here before: its Arm takeover collapsed in 2022 after regulators objected.
Our take: what to watch if you build on Hugging Face
- Nothing changes yet. The deal has not closed. Until it does, Hugging Face runs as an independent company.
- Watch download and hosting terms. The real test of "open" is whether non-NVIDIA hardware gets equal treatment in model cards, optimised builds and inference endpoints.
- Look for binding remedies. If regulators approve the deal, conditions written into a consent order would carry more weight than a press-release pledge.
- Keep a fallback. Teams that depend on Hugging Face for model weights should mirror critical models and keep their own checksums.
- It is part of a pattern. NVIDIA is moving from chips into software and distribution. Expect more scrutiny of each step.
For another big AI infrastructure bet, see our explainer on Google's nuclear-powered Finland data centre deal.
Sources
- NVIDIA Form 8-K, September 2, 2026
- TechCrunch: NVIDIA confirms it will buy Hugging Face
- CNBC: Hugging Face approached Huang weeks ahead of the deal
- The Next Web: DOJ looks into the Hugging Face deal
- DigiTimes: NVIDIA under DOJ probe over Hugging Face
Frequently asked questions
What is Hugging Face?
The largest public hub for AI models and datasets. It hosts about 3 million models and is used by more than 18 million developers.
How much is NVIDIA paying for Hugging Face?
About $12.93 billion in total: roughly $11.9 billion to stockholders plus a retention programme of up to about $1 billion for employees, per NVIDIA's SEC filing.
Has the deal closed?
No. NVIDIA expects it to close in the first half of 2027, subject to regulatory approvals.
Will Hugging Face stay open to other chipmakers?
NVIDIA says yes. Its filing commits to keeping the platform open, with uploads and downloads unchanged and other silicon vendors supported. These are company commitments, not regulator-imposed conditions.
Why is the US Justice Department looking at the deal?
Reports say the DOJ is asking whether NVIDIA would control a key AI distribution point and could use it to hurt rival chipmakers. An inquiry is not evidence of wrongdoing.
Does this affect people who just use ChatGPT or Gemini?
Not directly. It matters most to developers and companies that download open models, and to competition in AI hardware.