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<p class="wp-block-paragraph"><span class="section-lead">On Thursday,</span> Nvidia, a technology company known for its chips that support AI tools such as ChatGPT, announced its acquisition of Hugging Face for $12.93 billion amid competition in the AI industry.</p>
<p class="wp-block-paragraph">The specific cost was $12,930,300,000. Hugging Face is recognized for its community platform that hosts numerous open-source AI models that can be used, modified, and shared.</p>
<p class="wp-block-paragraph">Hugging Face gained attention in AI safety discussions after OpenAI’s system breached its platform during testing. Following this incident, Hugging Face CEO Clément Delangue has promoted open-source AI. According to a chart posted by Delangue, Hugging Face’s library saw a nearly 60 percent increase in data uploads in the two weeks after the breach became public, and last month, Meta released a new open model on Hugging Face.</p>
<p class="wp-block-paragraph">For Nvidia, this acquisition is part of a strategy for vertical integration. The company is also investing in data centers, offering up to $105 billion to assist OpenAI in leasing a data center in Ohio, which is expected to be the largest AI data center in the world.</p>
<p class="wp-block-paragraph">Nvidia CEO Jensen Huang has positioned the company as a supporter of open-source models, contrasting with companies like OpenAI and Anthropic, which have lobbied against open models due to concerns about product misuse and economic value preservation.</p>
<figure class="wp-block-embed is-type-rich is-provider-x wp-block-embed-x"><div class="wp-block-embed__wrapper"> <blockquote class="twitter-tweet"><p dir="ltr" lang="en">Exciting day for NVIDIA and <a href="https://x.com/huggingface?ref_src=twsrc%5Etfw">@huggingface</a>.<br /><br />Open models strengthen safety and cybersecurity, accelerate innovation and diffusion, and enable sovereignty. They allow every developer, startup, university, industry and country to build with, customize and benefit from AI.<br /><br />Thank you…</p>— Jensen Huang (@JensenHuang) <a href="https://x.com/JensenHuang/status/2095482647355244762?ref_src=twsrc%5Etfw">September 3, 2026</a></blockquote> </div></figure>
<p class="wp-block-paragraph">As AI companies like OpenAI, Anthropic, and Google develop their own AI chips to lessen their dependence on Nvidia, the company aims to incorporate open-source models that can compete with these AI providers.</p>
<p class="wp-block-paragraph">“Together, we will make A.I. more open, more capable and more accessible to people and institutions around the world,” Huang stated in his announcement of the acquisition. The implications of “more capable” and “more accessible” for the future remain uncertain.</p>
<p class="wp-block-paragraph"><em>Disclosure: The Center for Investigative Reporting, the parent company of Mother Jones, has sued OpenAI for copyright violations. OpenAI denies the allegations.</em></p>