On September 3rd, NVIDIA announced through its official blog that it has signed the final agreement for the acquisition of the open-source AI platform
Hugging Face. The total transaction price is 12,930,300,000 US dollars (approximately 129.3 billion US dollars). Approximately 11.9 billion dollars will be 

paid in cash to the shareholders of Hugging Face, and an equity retention plan of up to 1 billion US dollars is set up to retain and integrate the core 

employees of NVIDIA. Hugging Face currently has over 18 million registered developers, more than 3 million models, over 500,000 datasets, and over 

200,000 enterprise users.

According to the official announcement and the 8-K document submitted to the SEC, after the acquisition is completed, Hugging Face will continue to 

operate as an independent business unit, with its headquarters in New York and Paris remaining. The founder team has committed to staying for at least 

two years. NVIDIA has explicitly promised that Hugging Face will still support any models, frameworks, cloud, inference service providers, and computing 

platforms. The terms of commitment are written into the SEC document. This arrangement means that for the entire AI value chain from hardware, 

accelerators to model hosting, it is for the first time included in the same architecture by the same hardware manufacturer.

The focus of the market is on the amount, but what is more worth analyzing is the transaction motivation. When major clients such as OpenAI, Meta, and 

Google are strengthening their self-developed chips, NVIDIA still needs to have access to the entry points for developers to complete model discovery, 

evaluation, fine-tuning, and deployment beyond accelerators; the reach density of 18 million developers and 200,000 enterprise users of Hugging Face is 

beyond the reach of traditional GPU sales. CEO Jensen Huang in the official announcement called Hugging Face "the leader of AI democratization" and 

emphasized that NVIDIA itself has released over 500 models and 250 open datasets on the Hugging Face platform, being the largest open-source 

contributor on this platform. This public statement itself also means that NVIDIA's open-source stance will continue to be advanced with Hugging Face as 

the anchor point.

Hugging Face CEO Clément Delangue released another signal regarding the timing of the contact with NVIDIA: The company actively contacted Jensen 

Huang in the summer of this year to advance the transaction and explained externally as "OpenAI, Meta, and Google are at a turning point in their self-

developed chips, and they need more resources, scale, and visibility." From the valuation perspective, Hugging Face was valued at approximately 4.5 billion 

US dollars when it raised 235 million US dollars in 2023, and it once rejected a 7 billion US dollar valuation investment offer from NVIDIA in 2025. The final 

transaction price is close to doubling compared to the valuation negotiated last year. The transaction is expected to be completed in the first half of 2027, 

and it needs to pass antitrust approval in the United States and major countries.

For the Chinese engineering team and the open-source ecosystem, what really needs to be observed is not the label of NVIDIA's "cross-border acquisition,"

 but the actual changes in model hosting, inference services, enterprise workflows, and compatibility with AMD/Intel/Chinese domestic accelerators after
Hugging Face is held by a hardware manufacturer. Whether multi-hardware neutrality is included in the operational SLA, whether API performance is still 

priced without regard to hardware, and whether model weight distribution will introduce new authentication and signature mechanisms, all these factors 

will directly affect the specific experience that developers have each day. Writing the open commitment into the SEC filing is the bottom line, and above 

that, there are a large number of execution details that need to be verified item by item after the acquisition is completed.