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Nvidia Buys Hugging Face for $12.9 Billion

Graphics chip maker Nvidia is buying Hugging Face, a popular platform where AI developers build and share tools, for $12.9 billion.

By Piggy PressSep 3, 20262 min read 1 new word

Photo via BBC Business

In simple terms

If you use AI tools like ChatGPT or image generators, many of them were built using code and resources from Hugging Face. Nvidia buying it means one company now controls a central hub for AI development, which could affect how AI tools are built and who profits from them.

Nvidia announced it is purchasing Hugging Face, a website and community where people who build artificial intelligence systems collaborate and share their work. The deal is worth $12.9 billion. Hugging Face has become one of the most important gathering places for AI developers worldwide — it's where thousands of people freely share AI models (the software "brains" that power AI systems) and help each other solve problems.

By buying Hugging Face, Nvidia gains direct control over this thriving community of developers and the open-source AI tools they've built. Open-source means the code is freely available for anyone to see, use, and improve. For Nvidia, owning this platform is a way to cement its dominance in the AI industry — not just by selling chips, but by becoming central to how AI developers work and collaborate.

Fun fact

Hugging Face has over 5 million AI models (pre-built AI programs) shared on its platform—think of it like GitHub (where programmers share code) but specifically designed for AI. The $12.9 billion price tag is roughly what the entire cryptocurrency market was worth at its peak in 2021.

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Source: BBC Business