Nvidia deal talks have reportedly resulted in an agreement to acquire the open-source AI platform Hugging Face for $12.9 billion, according to Bloomberg, which cited a person familiar with the matter.
This acquisition would enable Nvidia to gain access to a popular platform for AI developers to find and develop models and tools through discovery, sharing, testing, and building open-source tools.
Nvidia Deal Could Expand Nvidia’s AI Software Reach
As reported by Bloomberg, discussions regarding the Nvidia deal started after the company received offers for acquisition by other parties. It was independently reported by Business Insider that Nvidia was in talks to acquire the company.
As per earlier reports from Business Insider, Hugging Face had been in talks with the bank regarding potential bids on the company.
An insider who is privy to this matter also informed CNBC that an acquisition by Nvidia was on the table during recent negotiations. This insider wished to remain anonymous since the information was not yet publicly disclosed.
The Nvidia deal will see Nvidia gain control of an open-source AI platform that is among the best in the world. Additionally, Nvidia will go beyond making computer hardware to venture into the field of AI software.
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Nvidia Builds a Broader AI Ecosystem
Nvidia has taken some significant steps in the entire AI sector over the past year. The firm has been working towards licensing its technology and has made a recent announcement worth $20 billion through AI chipmaker Groq.
The acquisition of Hugging Face can thus be seen to fit within this general trend. Nvidia has been increasingly investing in different forms of AI models – open source and closed.
Siddy Jobe, an investment fund manager at Eonopolis Exponential Technologies Funds, believes that the deal with Nvidia is logical since Hugging Face matches the community-oriented strategy of Nvidia.
According to CNBC, the company seems to be expanding its reach throughout the entire AI stack, starting from hardware and foundational models and up to applications.
Hugging Face Recently Faced a Security Incident
The reported Nvidia deal has come on the heels of a hacking attempt on Hugging Face, where there were fears about the risks posed by the security of AI systems and open-source models.
In response to the hacking attempt, Hugging Face CEO Clément Delangue attributed the problem to technical errors. Additionally, it emerged that the company had used a Chinese open-source model from Nvidia.
According to Delangue, AI cybersecurity can become one of the booming markets in the US and all around the world as AI technology becomes more sophisticated.
The deal will grant Nvidia access to the vibrant developer community at Hugging Face. This would help Nvidia consolidate its place in the entire AI industry by tying together its hardware computing business with the software and models used for creating AI technologies.
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