Nvidia employees have reportedly seen their wealth rise sharply
Nvidia has reportedly agreed to buy the open‑source AI model repository Hugging Face for $12.9 billion according to The Information. The reported price tag stands in sharp contrast to Hugging Face’s annualised revenue of $150 million. This deal would mark one of Nvidia’s biggest acquisitions to date and also underscores CEO Jensen Huang’s bet that demand for AI technology is still expanding rather than peaking. For those unaware, Hugging Face hosts open‑source large language models and datasets, giving Nvidia a powerful position at a time when rivals like Anthropic and OpenAI are exploring their own chip alternatives to Nvidia’s GPUs.
The Hugging Face report emerged the same day Nvidia forecast a 70% jump in revenue for its next fiscal year, reinforcing the company’s confidence that AI demand remains on a steep upward trajectory. Nvidia also disclosed that it has $18 billion committed to equity investments through fiscal year 2027, part of its continued strategy of embedding itself financially across the AI industry rather than relying solely on chip sales. Acquiring Hugging Face would give Nvidia control over one of the most important hosting platforms for open-source large language models and datasets, at a moment when builders of closed-source models — including Anthropic and OpenAI — are working to develop their own custom chips as alternatives to Nvidia’s graphics processing units. Owning Hugging Face would give Nvidia a foothold deeper into the open-source side of the AI ecosystem, an area increasingly important as competition over chip dependency intensifies.