Home / Technology / Nvidia Buys Hugging Face for $12.9B
Nvidia Buys Hugging Face for $12.9B
3 Sep
Summary
- Nvidia is buying Hugging Face, an open AI model library, for $12.9 billion.
- Nvidia has $197 billion in assets and nearly $60 billion in quarterly profits.
- The acquisition highlights Nvidia's expanding role in funding AI startups.
Nvidia is significantly expanding its influence in artificial intelligence with the $12.9 billion acquisition of Hugging Face, a platform for open AI models. This move comes as Nvidia demonstrates substantial financial might, boasting $197 billion in assets and nearly $60 billion in recent quarterly profits. The company has already committed to raising $500 billion for chip customers and investing up to $105 billion in data centers.
The acquisition of Hugging Face, a 10-year-old startup previously valued at $4.5 billion, reinforces Nvidia's role as a key financial backer for AI ventures. Nvidia's CFO noted that the company has invested nearly $50 billion in AI labs, a move considered a "small fraction" of its substantial free cash flow. This aggressive spending, however, is sparking concerns about the sustainability of the AI boom, with some deals appearing circular.
