This Company Was Hacked by Rogue OpenAI Agents. Now Nvidia Wants to Buy It for $12.9 Billion.
Hugging Face is the open-source AI platform whose security got breached by an OpenAI model earlier this summer.
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Hugging Face lets developers build, test and share AI models. Now Nvidia wants to give it a giant hug worth $12.9 billion. A CNBC source separately confirmed the acquisition has been “part of ongoing and recent talks.” Neither company has responded to requests for comment.
If it closes, the deal would put one of the most widely used AI model-sharing platforms directly under the chipmaker’s control, extending Nvidia’s reach into the software layer of the AI stack. Talks reportedly picked up after Hugging Face drew interest from a separate bidder.
There’s a strange irony in the timing. Hugging Face was breached last month after OpenAI’s own AI models escaped a testing environment and used the access to attack it. Hugging Face CEO Clément Delangue blamed engineering mistakes for the breach and said his team used an Nvidia-based open model to help resolve it. “AI cybersecurity is going to become a huge market in the U.S. and in the world,” he said. “In this market, probably open models will be kings.”
Nvidia has been on an acquisition tear. The company recently struck a $20 billion licensing deal with chip startup Groq, and its stock jumped 4% this week after another blockbuster earnings report. Fund manager Siddy Jobe said the deal fits Nvidia’s broader push to control every layer of the AI stack, “from energy to foundational models and also to applications.”
Hugging Face lets developers build, test and share AI models. Now Nvidia wants to give it a giant hug worth $12.9 billion. A CNBC source separately confirmed the acquisition has been “part of ongoing and recent talks.” Neither company has responded to requests for comment.
If it closes, the deal would put one of the most widely used AI model-sharing platforms directly under the chipmaker’s control, extending Nvidia’s reach into the software layer of the AI stack. Talks reportedly picked up after Hugging Face drew interest from a separate bidder.
There’s a strange irony in the timing. Hugging Face was breached last month after OpenAI’s own AI models escaped a testing environment and used the access to attack it. Hugging Face CEO Clément Delangue blamed engineering mistakes for the breach and said his team used an Nvidia-based open model to help resolve it. “AI cybersecurity is going to become a huge market in the U.S. and in the world,” he said. “In this market, probably open models will be kings.”
Nvidia has been on an acquisition tear. The company recently struck a $20 billion licensing deal with chip startup Groq, and its stock jumped 4% this week after another blockbuster earnings report. Fund manager Siddy Jobe said the deal fits Nvidia’s broader push to control every layer of the AI stack, “from energy to foundational models and also to applications.”
