Nvidia nears US$14 billion Hugging Face deal this week

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeInnovationNvidia nears US$14 billion Hugging Face deal this weekFounded in 2016, Hugging Face operates a platform for sharing AI models that can be used freely by othersAuthor of the article:Ryan Gould, Ian King and Rachel MetzLast updated 47 minutes ago Buying Hugging Face would be the biggest move yet in chief executive Jensen Huang’s push to broaden the uptake of artificial intelligence and extend his customer list. Photo by CFOTO/Future Publishing via Getty ImagesNvidia Corp. is in advanced talks to acquire artificial intelligence startup Hugging Face in a transaction that could total about US$14 billion, according to people familiar with the matter.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountAn agreement by Nvidia to acquire Hugging Face for US$12.9 billion could be reached as soon as this week, said one of the people, who asked not to be identified because the details are private. The deal could include a US$1 billion retention package for Hugging Face employees, the person said.A final agreement hasn’t been reached and the timing or details could still change, the people said. Representatives for Nvidia and Hugging Face declined to comment.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againBuying Hugging Face would be the biggest move yet in chief executive Jensen Huang’s push to broaden the uptake of artificial intelligence and extend his customer list. The deal would give Nvidia control of one of the key platforms where developers showcase and share AI models.Huang is committed to helping foster so-called open source models to avoid the technology of a few large companies — ones that currently provide him with the biggest chunk of his revenue but who are also all forging ahead with their own chip projects — coming to dominate AI.Nvidia is already a backer of Hugging Face, alongside Alphabet Inc.’s Google, Amazon.com Inc., Intel Corp. and Salesforce Inc., among others.Founded in 2016, Hugging Face operates a platform for sharing AI models that can be used freely by others. The startup was valued at US$4.5 billion in a funding round three years ago. Nvidia’s talks with the company were reported earlier by Business Insider.Hugging Face, which makes AI software and hosts it for other companies, was at the centre of a cybersecurity incident in which a model being tested by OpenAI inadvertently hacked the platform. The breach raised alarms about the safety of cutting-edge AI technology.OpenAI has said it could have reacted sooner to prevent the attack on Hugging Face’s systems.Nvidia has struck several deals in the past year, including a US$6 billion licensing agreement in August with startup Poolside that included extending job offers to many of that company’s employees. Nvidia also paid about $20 billion for most of the chip startup Groq.Nvidia, the world’s most valuable company, is the leading maker of AI accelerators, the chips that help train and operate models. It has gradually added a variety of other technologies, including software, with the goal of expanding the AI economy.The Santa Clara, California-based company gave a surprisingly strong sales forecast for fiscal 2028 last week, saying revenue would grow about 70 per cent.We apologize, but this video has failed to load.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.