Nvidia's interest in Hugging Face is a hedge against a future dominated by OpenAI and Anthropic

Aug 28, 2026 01:34 AM - 2 hours ago 1

What does $13 cardinal bargain Nvidia these days? A bigger opportunity successful what AI gets built and what it runs on.

Business Insider reported connected Wednesday that the spot elephantine was successful talks to get Hugging Face, which hosts open-source AI models. That lines up pinch Nvidia's strategy arsenic of late, arsenic it has been beating the drum astir open-source AI — models that anyone tin usage and build on.

Open models could stave disconnected a early dominated by giants for illustration OpenAI and Anthropic, some of which create closed, proprietary models. If apical AI labs predominate the models being utilized and build their ain chips to tally them — arsenic OpenAI is doing pinch Jalapeño — they could yet trim Nvidia out.

"Open root is an important counterweight to closed platforms for illustration OpenAI and Anthropic," said Brad Gastwirth, world caput of investigation and marketplace intelligence astatine Circular Technology. "The much AI improvement stays unfastened and fragmented crossed galore models and developers, the much opportunity Nvidia has to stay the underlying infrastructure provider."

There's a much contiguous payoff, too: trading much chips. Developers utilizing models from Hugging Face person to determine which hardware and package to tally them on, and owning the hub could springiness Nvidia much sway complete their choices.

Neither Nvidia nor Hugging Face instantly responded to requests for remark from Business Insider.

Nvidia could get much power complete open-source AI

Nvidia has been circling Hugging Face for years.

It joined a $235 cardinal backing information successful 2023, and it distributes its ain family of unfastened models, Nemotron, connected Hugging Face. Last year, Nvidia projected a $500 cardinal finance successful Hugging Face astatine a $7 cardinal valuation, which the startup rejected, the Financial Times reported.

Hugging Face said astatine the clip it didn't want a azygous investor wielding excessively overmuch influence. That's because 1 of its hallmarks is its openness, pinch models that tally connected competing chips and unreality companies, including AMD and Google.

That makes a imaginable Nvidia acquisition a striking reversal, and it creates a tricky balance.

"The biggest consequence is neutrality," Gastwirth said. "Hugging Face has a batch of worth because developers spot it arsenic an unfastened platform. Nvidia would person to beryllium observant not to undermine that."

While Nvidia could get greater power complete Hugging Face, it whitethorn person to usage that power sparingly to sphere the openness that makes the startup truthful valuable.

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Geoff Weiss is simply a elder newsman connected Business Insider’s tech team, wherever he writes astir AI startups and Y Combinator, the intersection of AI and the media industry, and workplace dynamics wrong apical AI labs and spot companies.Previously, Geoff was connected the media desk, covering YouTube and Netflix, and themes for illustration the intersection of Hollywood and the creator economy. His activity connected Netflix’s video podcasting ambitions and Mr Beast’s lessons for Hollywood won 2nd and first prize, respectively, astatine the 2025 LA Press Club Awards.Prior to joining Business Insider, Geoff was the elder editor of Tubefilter and a unit writer astatine Entrepreneur. He graduated from New York University pinch a grade successful English Literature.He tin beryllium reached astatine [email protected], connected Signal @geoffweiss.25, and connected LinkedIn. Have a tip? Use a individual email reside and a nonwork device; here's our guideline to sharing accusation securely.Selected stories:Nvidia crushed its 4th — and CEO Jensen Huang said successful a leaked all-hands that 'the marketplace did not admit it'Nvidia will ft the measure for Trump's caller visa fees. Here's what CEO Jensen Huang told staff.Massive AI salaries and RTO are fueling a existent property roar successful San Francisco: 'It's going to rainfall money'The AI talent wars are ricocheting crossed startups. Here's really they're competing pinch Big Tech.