Nvidia has agreed to acquire Hugging Face for $12.93 billion. This marks the company's second-largest acquisition to date, following a $20 billion purchase of Groq's assets.
The startup's annualized revenue is approximately $150 million. CEO Jensen Huang stated that the valuation was necessary to outbid other potential buyers.
Nvidia gains access to a platform with over 18 million users, more than 3 million models, and 500,000 datasets. The platform is also used by more than 200,000 companies.
The deal is strategic, as Jensen Huang noted that half of Nvidia's business is largely driven by open models, and Nvidia is the world's largest contributor of such models.
