Nvidia agrees to acquire Hugging Face for $12.9 billion in major AI deal

1 min read | Published on 27 Aug 2026, 12:08 PM |Updated on 27 Aug 2026, 12:08 PM

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Shriram SScanX News Team

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Key Highlights

Nvidia agrees to acquire Hugging Face for $12.9 billion, one of its largest deals after Groq.
The deal values the startup at nearly 86x its reported annualized revenue of $150 million.
Hugging Face previously rejected a $500 million Nvidia investment at a $7 billion valuation.
Nvidia reported Q2 revenue of $96.22 billion, up 106% year-over-year.
The platform hosts 13 million users and is used by firms like Alibaba and DeepSeek.

*this image is generated using AI for illustrative purposes only.

Nvidia Corp (NASDAQ: NVDA) has reportedly agreed to acquire open-source AI model repository Hugging Face for $12.9 billion, according to a report by The Information late Wednesday.

This transaction represents one of Nvidia’s largest acquisitions to date, trailing only its $20 billion purchase of Groq. The deal secures Nvidia control over Hugging Face, a critical hub hosting open-source large language models and datasets.

Valuation and Financial Context

The $12.9 billion price tag implies a significant premium over Hugging Face’s reported annualized revenue of $150 million. This valuation marks a substantial increase from the $4.5 billion valuation assigned during the startup’s $235 million funding round in 2023. Investors in that round included Nvidia, Salesforce Inc (NYSE: CRM), and Alphabet Inc’s Google (NASDAQ: GOOGL).

Metric	Value
Deal Value	$12.9 billion
Hugging Face Annualized Revenue	$150 million
Previous Valuation (2023)	$4.5 billion
Nvidia’s Prior Largest Acquisition	$20 billion (Groq)

Strategic Implications

Hugging Face serves as a key distribution channel for AI technologies, boasting 13 million users. Major entities, including China’s DeepSeek and Alibaba Group Holding Ltd – ADR (NYSE: BABA), utilize the platform to distribute their AI models globally.

Earlier this year, Hugging Face rejected a proposed $500 million investment from Nvidia that would have valued the company at $7 billion. The startup cited a desire to avoid single-investor dominance in decision-making. Recent reports indicated Hugging Face was exploring a sale valued at $13 billion or more following a security breach caused by an OpenAI model.

Nvidia’s AI Expansion

This acquisition aligns with Nvidia’s aggressive expansion in the AI sector. In its Q2 financial results, Nvidia reported revenue of $96.22 billion, reflecting a 106% year-over-year increase. CEO Jensen Huang stated that the “AI infrastructure buildout is at full steam.”

Nvidia has also committed $18 billion in equity investments through fiscal year 2027. The move comes as closed-source model builders like Anthropic and OpenAI explore alternatives to Nvidia’s graphics processing units.

What the Numbers Show

The acquisition premium highlights the strategic value placed on open-source ecosystem control. The jump from a $4.5 billion valuation in 2023 to $12.9 billion now suggests rapid appreciation in the market for open-source AI infrastructure, despite modest current revenue generation of $150 million annually.

How will regulatory bodies in the US and EU evaluate the $12.9 billion acquisition given Hugging Face's role as a neutral hub for global AI model distribution?

Will major competitors like Alibaba and DeepSeek migrate their open-source models to alternative platforms to avoid Nvidia's ecosystem control?

How does this acquisition impact the competitive dynamics between Nvidia and closed-source AI leaders like OpenAI and Anthropic who are seeking hardware independence?

Nvidia, Salesforce, CrowdStrike, Okta, Abercrombie Q2 Results: Revenue and EPS Beats Drive Gains

2 min read | Published on 27 Aug 2026, 07:28 AM |Updated on 27 Aug 2026, 07:28 AM

Reviewed by

Naman SScanX News Team

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Key Highlights

Nvidia Q2 revenue hit $96.22 billion, up 106% YoY, beating estimates; adjusted EPS of $2.22 also topped forecasts.
Salesforce adjusted EPS of $5.90 significantly beat the $3.27 estimate, driving a 12.98% after-hours stock surge.
CrowdStrike reported $1.47 billion in revenue, up 26% YoY, and raised fiscal 2027 revenue guidance to $5.99 billion-$6.01 billion.
Okta’s Q2 revenue of $805 million and EPS of $1.05 both exceeded analyst estimates, leading to a 20.85% after-hours jump.
Abercrombie & Fitch shares surged 35.67% after reporting EPS of $4.17, more than double the $1.99 estimate.

*this image is generated using AI for illustrative purposes only.

Five prominent US-listed companies reported second-quarter earnings that exceeded analyst expectations, triggering substantial after-hours trading activity across the technology and consumer discretionary sectors.

Nvidia Corporation (NASDAQ: NVDA) led the tech rally with revenue of $96.22 billion, up 106% year over year, beating the $92.18 billion estimate. Adjusted EPS of $2.22 surpassed expectations of $2.10. Despite the double beat, shares fell 1.59% during regular hours to close at $209.66 before rising 4.71% to $219.53 in after-hours trading. The company guided for third-quarter revenue between $105.84 billion and $110.16 billion, above the $104.20 billion consensus.

Salesforce Inc (NYSE: CRM) reported fiscal 2027 Q2 revenue of $11.35 billion, an 11% year-over-year increase, slightly above the $11.32 billion estimate. However, adjusted EPS of $5.90 significantly beat the $3.27 expectation. The stock closed at $205.62, down 0.03%, but surged 12.98% to $232.32 in extended trading. Salesforce raised its full-year revenue outlook to $46.1 billion-$46.4 billion and adjusted EPS guidance to $16.67-$16.71.

CrowdStrike Holdings Inc (NASDAQ: CRWD) posted revenue of $1.47 billion, up 26% year over year, exceeding the $1.44 billion estimate. Adjusted EPS of 31 cents topped the 29-cent forecast. Shares rose 2.05% to $189.18 in regular trading and jumped 10.49% to $209.02 after hours. The company raised its fiscal 2027 revenue guidance to $5.99 billion-$6.01 billion.

Okta Inc (NASDAQ: OKTA) delivered revenue of $805 million, rising from $728 million a year earlier, beating the $795.12 million estimate. Adjusted EPS of $1.05 exceeded the 97-cent expectation. The stock climbed 2.92% to $134.42 during the day and rallied 20.85% to $162.45 in extended trading. Okta raised its fiscal 2027 revenue outlook to $3.22 billion-$3.23 billion.

Abercrombie & Fitch Co (NYSE: ANF) saw its stock surge 35.67% to close at $147.75. The retailer reported earnings of $4.17 per diluted share on sales of $1.267 billion, significantly beating estimates of $1.99 per share and $1.248 billion in revenue, respectively. The company raised its fiscal 2026 EPS guidance to $13.10-$13.60 from the previous range of $10.20-$11.

What the Numbers Show

The market reaction highlights a divergence between operational execution and growth rate expectations. While Nvidia’s revenue grew 106% YoY, the stock initially declined due to concerns over slower year-over-year growth rates in guidance and the exclusion of China data center revenue. Conversely, Salesforce’s massive EPS beat ($5.90 vs $3.27 estimate) drove a 12.98% after-hours surge, indicating investors are rewarding margin expansion and profitability surprises even when top-line growth (11%) is moderate. Similarly, Abercrombie & Fitch’s 35.67% intraday surge underscores the market’s premium on significant earnings per share beats, where actual EPS was more than double the estimate.

How might the initial sell-off in Nvidia's stock despite strong earnings signal a shift in investor sentiment regarding AI infrastructure growth sustainability and China exposure?

Could Salesforce's significant EPS beat driven by margin expansion rather than top-line growth indicate a broader market pivot toward profitability over pure revenue growth for enterprise software firms?

Will the substantial after-hours rallies in cybersecurity stocks like CrowdStrike and Okta lead to increased consolidation activity or higher valuation multiples across the sector?