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Nvidia and Hugging Face partnership announcement graphic from Nvidia's official blog
Photo: NVIDIA

Nvidia Stock Up 2% on $12.9B Hugging Face Acquisition

NVIDIA Blog2 min read7 sources

Why is Nvidia stock up today?

Nvidia (NVDA) shares gained roughly 2% on Thursday when the chipmaker agreed to buy Hugging Face for $12.93 billion, a deal now advancing through regulatory review toward an expected H1 2027 close.

Key numbers

Acquisition price$12.93B~86x Hugging Face annual revenue of ~$150M
Deal premium over last private valuation2.9xvs. $4.5B Series D valuation in Aug 2023
Hugging Face developers18M+across 200,000+ companies
Models hosted on platform3M+plus 500K+ datasets and 1M+ apps
NVDA market cap$5.3T+24% YTD 2026
Nvidia's largest deal — Groq assets (Dec 2025)$20BHugging Face deal is Nvidia's second-largest ever

What happened

Nvidia (NVDA) shares gained roughly 2% on Thursday when the chipmaker agreed to buy Hugging Face for $12.93 billion, a deal now advancing through regulatory review toward an expected H1 2027 close. The price breaks down as $11.9 billion in cash to Hugging Face shareholders plus up to $1 billion in equity to retain key employees — making it Nvidia's second-largest deal ever, behind only its $20 billion purchase of Groq's inference assets in late 2025. Hugging Face runs the internet's largest open-source AI library, where 18 million developers share more than 3 million models, 500,000 datasets, and 1 million applications across 200,000 companies. At $12.93 billion on roughly $150 million in annual revenue, Nvidia is paying about 86 times sales for a platform that was approaching breakeven.

Why it matters

Nvidia is acquiring the open hub where most of the world's AI builders go to share and download models — effectively the GitHub of artificial intelligence. Owning it gives Nvidia control across the full AI stack, from the chips that train models to the community where they are published and discovered. The central tension is that a platform long prized for being hardware-neutral will now belong to the company controlling roughly 90% of AI training chips — a concern regulators in the US and EU are already weighing.

Who this affects

Marketbullish
Low impact
Nvidia shareholders gained ~2%; broader chip sector reaction was mixed.
Companybullish
Medium impact
Nvidia gains developer loyalty but faces antitrust constraints.
Competitorsbearish
Medium impact
AMD, Google, Amazon risk losing Hugging Face's hardware-neutral benefits.
Industrymixed
High impact
AI's open-source hub under corporate ownership for the first time.

Nvidia vs AMD, Broadcom, Qualcomm

NvidiaNVDA:NASDAQ$5.3T+2.5%+24%28x
AMDAMD:NASDAQ$890B+6.4%+120%132x
BroadcomAVGO:NASDAQ$1.77T+2.3%+4%—
QualcommQCOM:NASDAQ$198B+2.1%—21x

As of 2026-09-17

How we got here

  1. Hugging Face raises $235M Series D at $4.5B valuation; Nvidia invested

  2. Nvidia closes $20B Groq asset purchase, its largest deal ever

  3. TechCrunch reports Nvidia in advanced talks to buy Hugging Face at ~$13B

  4. Nvidia files SEC 8-K confirming $12.93B definitive Hugging Face agreement

  5. Jensen Huang pledges Hugging Face stays open-source and hardware-neutral

What to watch

  • FTC/DOJ Hart-Scott-Rodino clearance — first US regulatory gate for the dealQ4 2026
  • EU Phase I decision; antitrust concerns could trigger deeper Phase II reviewQ4 2026
  • Whether regulators demand enforceable open-source neutrality conditions from Nvidia2027-01-01

Educational content only. Not investment advice.

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