NVIDIA has entered advanced talks to acquire Hugging Face, a leading open-source AI modeling platform, in a deal that could be valued at up to $12.9 billion. This development comes days after reports surfaced of interest from several parties in acquiring the company, which has become a central platform for developers and researchers to share AI models, data, and related tools

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The potential deal is valued at more than the company's valuation.

A separate report indicates a preliminary agreement worth $12.9 billion.

Microsoft had previously expressed interest but reportedly withdrew from talks.

NVIDIA is nearing an acquisition of Hugging Face.

The potential deal comes after Hugging Face began exploring acquisition offers amid significant interest in companies providing the infrastructure and services necessary for developing AI models. The platform serves as a central space where developers and researchers can share models, data, and applications, giving it a crucial role within the open-source AI community.

The potential deal significantly exceeds the company's previous valuation. Hugging Face secured $235 million in funding in 2023, valuing the company at approximately $4.5 billion, with participation from a group of investors including NVIDIA, Google, and Salesforce. The potential deal would mean the company's value would nearly triple its valuation three years ago.

These developments reveal a notable shift in NVIDIA's stance toward Hugging Face. Last year, the company made a $500 million investment offer that would have valued the platform at around $7 billion, but Hugging Face rejected the offer due to concerns about the influence of a single investor on the company's decisions, according to previous reports.