Nvidia has reportedly acquired Hugging Face, the AI model hub and open-source tools platform, according to DA Davidson. Analysts frame the deal as a defensive move to keep major AI labs or Google from controlling the platform.
Nvidia has reportedly acquired Hugging Face, the AI model hub and open-source AI tools platform founded by three French entrepreneurs in New York, according to DA Davidson. The firm frames the move as a defensive strategy meant to protect the open-source AI ecosystem.
Hugging Face operates as a repository for AI models and open-source tools and carries an estimated $150 million in run rate revenue. The company has been compared to GitHub before its acquisition by Microsoft.
DA Davidson said the acquisition aims to prevent major AI labs or Google from controlling the platform, a shift that could otherwise slow down open-source AI development in the United States. The move follows concerns that emerged from Microsoft's GitHub acquisition, which put other companies at a disadvantage and led Google to back GitLab as an alternative.
Hugging Face recently became part of OpenAI's security demonstration, where the company worked with third-party researchers to show how AI agents could identify and exploit vulnerabilities in the platform. The demonstration formed part of ongoing efforts by OpenAI and Anthropic to highlight AI security concerns.
Anthropic, meanwhile, has taken a different approach: it partnered with Salesforce to increase token usage from enterprise customers, a partnership aimed at steering Salesforce customers away from open-source token alternatives.
DA Davidson indicated that both semiconductor companies and hyperscalers stand to benefit from the continued development of open-source AI.
Source: Investing.com
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