Nvidia Reportedly in Advanced Talks to Acquire Hugging Face for $13 Billion

Key Facts

1Reports indicate Nvidia Corp. is close to an agreement to acquire AI startup Hugging Face for approximately $13 billion.

2Hugging Face co-founder Thomas Wolf declined to comment on acquisition reports but noted the startup consistently attracts buyer interest.

In a move reflecting the strategic push by tech giants to control AI development infrastructure, Nvidia Corp. is reportedly close to an agreement to acquire AI startup Hugging Face for approximately $13 billion. The deal would consolidate Nvidia's position in the AI ecosystem by securing the leading repository for open-source AI models and tools. According to reports, Hugging Face co-founder Thomas Wolf declined to comment on the specific acquisition rumors but noted that the startup consistently attracts interest from potential buyers.

This potential consolidation comes amid intense competition in the semiconductor sector. Per market data, Nvidia (NVDA) shares closed at $209.66 on August 26, 2026. In the broader peer group, AMD closed at $209.66 on August 24, 2026, while other industry players like TSM and INTC closed at $209.66 and $87.1 respectively on August 26, 2026, reflecting the current valuation landscape for AI-linked hardware and infrastructure.

Traders are closely watching for official confirmation as NVDA remains near its recent daily low of $209.23 (as of August 26, 2026 close). With no major upcoming semiconductor-specific catalysts in the immediate economic calendar, market participants are focusing on technical levels, specifically the recent daily high of $213.6, to gauge the stock's reaction to the merger rumors.