Nvidia has announced a definitive agreement to acquire Hugging Face, an artificial intelligence platform, in a transaction valued at approximately $12.9 billion. The deal includes a $11.9 billion payment to investors and an additional $1 billion in stock-based incentives for employees transitioning to the chipmaker.
Founded in 2016 by Clément Delangue, Julien Chaumond, and Thomas Wolf, Hugging Face serves as a central repository for the AI community. The platform currently hosts over three million AI models and supports more than 18 million developers and 200,000 companies. By integrating this community, Nvidia aims to bolster its software offerings as major tech firms, such as Microsoft and Meta, increasingly develop their own proprietary hardware.
Despite the acquisition, Nvidia stated that Hugging Face will continue to operate as an open platform, with no requirements for users to adopt Nvidia-specific hardware or services. This open-source approach is viewed by some as a way to broaden access to AI technology. Yaël Ossowski of the Consumer Choice Center described the move as a "vote of confidence in open AI," noting that it could foster greater competition if the platform remains accessible to smaller enterprises and startups.
The acquisition comes as Nvidia seeks to diversify beyond its core business of manufacturing high-performance AI chips. Hugging Face, which has previously received backing from companies including Amazon, AMD, and Intel, provides essential datasets and cloud tools for building AI applications. Following the announcement, Nvidia shares saw a modest increase of nearly 1.5%.
Source: BBC News
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