Nvidia is in talks to acquire the AI startup Hugging Face in a deal that could be valued at approximately $14 billion, Bloomberg News reported on Wednesday, citing people familiar with the matter.
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According to the report, an agreement valued at $12.9 billion could be reached as early as this week. Additionally, the deal may include a $1 billion employee retention package.
Bloomberg notes that no final agreement has been reached yet, and the terms and timing of the deal could change.
This acquisition would mark a major move by Nvidia CEO Jensen Huang to expand the application of artificial intelligence and grow the company’s customer base.
Hugging Face operates a platform where developers share and access AI models. Consequently, Nvidia would gain control over a key hub for open-source AI development.
Nvidia has backed Hugging Face alongside Alphabet, Amazon, Intel, and Salesforce. The startup was valued at $4.5 billion during a funding round in 2023.
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