{"id":3818,"date":"2026-09-03T20:10:22","date_gmt":"2026-09-03T20:10:22","guid":{"rendered":"https:\/\/www.vaultinsider.top\/?p=3818"},"modified":"2026-09-03T20:10:22","modified_gmt":"2026-09-03T20:10:22","slug":"hugging-face-goes-from-a-scrappy-startup-named-after-an-emoji-to-13-billion-nvidia-acquisition","status":"publish","type":"post","link":"https:\/\/www.vaultinsider.top\/?p=3818","title":{"rendered":"Hugging Face goes from a ‘scrappy’ startup named after an emoji to $13 billion Nvidia acquisition"},"content":{"rendered":"

<\/p>\n

Welcome to Eye on AI. Emily Forlini here, filling in for Beatrice Nolan. In today\u2019s issue:<\/strong><\/em><\/p>\n

\n
    \n
  • Nvidia will purchase open-source AI platform Hugging Face for $13B<\/li>\n
  • OpenAI debuts GPT-6 Astra model<\/li>\n
  • Google debuts Gemini 3.8 Flash model<\/li>\n
  • ChatGPT experiences second outage in three days\u2014and Claude, Grok also go down<\/li>\n<\/ul>\n

    Reporting on AI every single day has admittedly made me bit numb to the astronomical sums of money flowing into the industry, but today my eyes did a cartoonish pop when I saw how much Nvidia is buying Hugging Face for.<\/p>\n

    \u201cNvidia has agreed to acquire Hugging Face for $12,930,300,000<\/strong>,\u201d a blog post said. While it\u2019s not the biggest sum we\u2019ve seen in the AI industry, it\u2019s quite the startup exit for Hugging Face. The company was founded in 2016 by three French entrepreneurs living in New York City, who named it after the \ud83e\udd17 emoji. Over the next 10 years, it has grown into a trusted repository for AI developers.<\/p>\n

    \u201cIt\u2019s been a wild ride for Hugging Face,\u201d cofounder Thomas Wolf said on X. \u201cWe certainly did not anticipate, back in 2016, as a tiny team of scrappy underdogs, that the field would grow so much or that the impact we could have on it would become so massive.\u201d<\/p>\n

    The deal also makes clear how important open-weight models, like the ones Hugging Face hosts on its platform, are for the future of Nvidia\u2019s business. As OpenAI, Microsoft, Amazon, Meta, and other closed-source AI heavyweights that have been major customers of Nvidia develop their own chips to reduce reliance on Nvidia GPUs, the company sees open-weight models as a core future revenue stream.<\/p>\n

    For Hugging Face, getting bankrolled by Nvidia could mean major growth for the platform. It currently has 18 million individual users and 200,000 enterprise clients, Nvidia told reporters today. \u201cOur goal is is to get to 100 million AI builders in the next few next few years, and we think with the support of of Nvidia, we have more chances to get there faster,\u201d Hugging Face CEO and cofounder Cl\u00e9ment Delangue said.<\/p>\n

    But while Nvidia and Hugging Face line their pockets, the individuals that created and listed models on Hugging Face haven\u2019t seen a dollar. <\/p>\n

    \u201cIt\u2019s unfortunate [Hugging Face] never found a way for us to monetize our creations,\u201d Eric Hartford, creator of an open-weight model called Dolphin, Chief Scientist of lazarusaie.com, and the founder of quixi.ai tells Fortune<\/em>. \u201cIf I got a dollar for every download of Dolphin I\u2019d be rich.\u201d<\/p>\n

    Hugging Face turned down Nvidia in the past. Why now?<\/h2>\n

    Nvidia has had its eye on Hugging Face for years. It participated in the company\u2019s 2023 Series D funding round, which valued Hugging Face at $4.5 billion, TechCrunch reports. Last year, Hugging Face turned down a $500 million investment offer from Nvidia that would have valued it at $7 billion, because the investment would have made Nvidia the company\u2019s largest minority shareholder and the founders wanted the platform to keep its independence, according to The Financial Times<\/em>.<\/p>\n

    So, why did they agree to the deal now? In a briefing with reporters today, Delangue did not confirm the $500 million offer, and said previous reporting on the company\u2019s fundraising can be \u201cquite far from reality\u201d since Hugging Face never publicly comments on it.<\/p>\n

    \u201cThe truth is that throughout the life of Hugging Face, we always got quite a lot of offers for acquisitions that we turned down in the past,\u201d Delangue said. \u201cI think this summer the planets aligned\u2026we increasingly were convinced that Nvidia would be the perfect home for us, and so our confidence grew tremendously, and we decided that it was the best thing to do for Hugging Face, but also for the field and for AI in general.\u201d<\/p>\n

    He\u2019s likely referring in part to a letter Nvidia CEO Jensen Huang signed on the importance of open-weight models, which became his first X post. \u201cOpen models strengthen safety and cybersecurity, accelerate innovation and diffusion, and enable sovereignty,\u201d the letter said.<\/p>\n

    Also this summer, Hugging Face gained more mainstream name recognition after OpenAI\u2019s models hacked into its repositories during training. I have to imagine that boosted the company\u2019s brand recognition, creating the perfect storm to coax a big offer out of Nvidia.<\/p>\n

    Can Hugging Face stay neutral, or will its models now favor Nvidia hardware?<\/h2>\n

    Now, the big debate in the AI industry is whether Nvidia\u2019s acquisition will subtly influence the open-source ecosystem to favor its hardware. Model creators could choose to build their models for Nvidia hardware, especially if that makes it easiest to launch them on Hugging Face and for others to use them.<\/p>\n

    Nvidia said Hugging Face \u201cwill remain an open platform\u201d in which developers can freely choose the models, frameworks, and computing platforms that they want. \u201cNvidia compute will not be required to build on or deploy through Hugging Face,\u201d the company said.<\/p>\n

    However, some say there\u2019s already a suspicion that Hugging Face is subtly biased toward Nvidia, and the acquisition is likely to accelerate that tilt.<\/p>\n

    \u201cHugging Face runs a giant library called Transformers, which is the gatekeeper for model releases,\u201d Hartford said. \u201cThough they have had a natural bias for Nvidia due to its overwhelming popularity, they haven\u2019t been unnaturally biased, or mis-incentivized. With Nvidia ownership that all changes. They will still be the gatekeepers, and they will be unnaturally incentivized to favor Nvidia and disfavor Nvidia\u2019s competitors. Not because of a conspiracy theory, but [because of] the dynamics of ownership.\u201d<\/p>\n

    Nvidia also offers its own open models and data on Hugging Face, and says it\u2019s \u201cthe largest contributor\u201d on the platform, offering \u201cmore than 500 models\u201d and \u201cmore than 250 open datasets.\u201d It could advertise these models on Hugging Face now, as the platform owner, and gain more users.<\/p>\n

    On a more optimistic note, all of this could be a good thing for the business world. Open-weight models offer more customization and transparency than closed alternatives from the likes of OpenAI or Anthropic. It\u2019s possible this acquisition makes it easier for organizations that are open-source-curious to finally take the plunge, opening up new ways to use AI.<\/p>\n

    With that, here\u2019s more AI news.<\/p>\n

    Emily Forlini<\/strong>
    emily.forlini@fortune.com
    @emilyforlini<\/p>\n

    FORTUNE ON AI<\/h3>\n

    OpenAI launches GPT-6 Astra, its most powerful model yet and touts its ability to use your computer\u2014by Emily Forlini<\/em><\/p>\n

    Google shipped four Gemini Flash models in 106 days. But its flagship frontier model is still nowhere to be seen\u2014by Wen Shao<\/em><\/p>\n

    Safety experts warn novel design of OpenAI\u2019s Astra model could make future AI agents harder to monitor\u2014by Jeremy Kahn<\/p>\n

    Anthropic pauses some AI training following rogue agent hacks. Here\u2019s how it compares with OpenAI \u2014 by Beatrice Nolan<\/em><\/p>\n

    Mamdani to New York City kids: No AI until high school\u2014 by Catherina Gioino<\/em><\/p>\n

    AI IN THE NEWS<\/h3>\n

    ChatGPT, Claude, and Grok are experiencing outages. <\/b>ChatGPT is down for the second time this week, and now Claude and Grok are also either fully down or experiencing issues, according to MacRumors via DownDetector. Wondering when you’ll be able to get any work done again? You can track the status here for ChatGPT, Claude, and Grok.<\/p>\n

    Anthropic lines up against OpenAI and Google over Massachusetts AI bill. <\/strong>Anthropic is breaking with OpenAI and Google over a Massachusetts proposal that would require major AI developers to hire independent evaluators to assess their models for catastrophic risks every four months. Anthropic and AI safety groups argue the measure would raise the bar for safety without stifling innovation, while OpenAI and Google warn that state-by-state testing mandates could create fragmented oversight and compliance uncertainty. The fight highlights states\u2019 growing role in AI regulation as Congress remains slow to act, with Massachusetts\u2019 approach potentially serving as a model for legislation elsewhere. Read more here from The Information.\u00a0<\/p>\n

    Novice hikers who planned their trip with Gemini call for rescue. <\/strong>A trio of inexperienced hikers that relied heavily on Gemini to plan their route up California’s Mount Shasta eventually got lost and had to get rescued by U.S. Forest Service rangers. “They were advised by Gemini to bring far less food and water than their group required,” rangers said, calling the reliance on AI a “critical misstep.” More from NBC Bay Area.<\/p>\n

    Vice President JD Vance says some AI use has “dark, satanic energy.” <\/strong>In an interview with Christian podcaster Bryce Crawford, Vance expresses more hesitation about AI, including data centers, than we typically hear from the Trump Administration, NBC News reports. Meanwhile, Trump says communities that don’t want data centers built will “end up being backwards and poor” on Truth Social.<\/p>\n

    EYE ON AI NUMBERS<\/h3>\n

    22%<\/h2>\n

    Although it might seem like AI has taken the entire business world by a storm, a new Gartner survey finds just 22% of organizations have successfully implemented and scaled up AI operations across multiple divisions.<\/p>\n

    The most common uses for AI, as reported by C-suite leaders, are cybersecurity threat detection and response (54%), IT service desk automation (54%) and automated code generation and refactoring (44%).<\/p>\n

    AI CALENDAR<\/h3>\n

    Oct. 1:\u00a0<\/strong>Fortune AIQ conference, New York. Apply\u00a0here\u00a0to attend.<\/p>\n

    Oct. 2-4:\u00a0<\/strong>The Curve, Berkeley, Calif.\u00a0<\/p>\n

    Nov. 16-17<\/strong>: Fortune 500 Innovation Forum, Detroit. Apply\u00a0here\u00a0to attend.<\/p>\n

    Dec. 6-12:\u00a0<\/strong>Neural Information Processing Systems (Neurips) conference. Sydney, Australia.<\/p>\n

    Dec. 7-8:\u00a0<\/strong>Fortune Brainstorm\u00a0AI<\/span>, San Francisco. Apply\u00a0here\u00a0to attend.<\/p>\n

    Inside the “lifemaxxing” economy<\/h3>\n

    \"\"<\/div>\n<\/p>\n

    Nearly half of all Americans wear a fitness tracker, up from just 13% a decade ago. But while early wearables just counted steps, connected fitness giants like Oura and Tonal are using artificial intelligence to predict your recovery before you even feel it. Fortune<\/em> senior writer Allie Garfinkle goes inside the $2 trillion wellness economy to test the tech, analyze the multi-billion-dollar data moats, and ask a fundamental question: Is hyper-optimization making us peak performers, or just more anxious? Watch the video here.\u00a0<\/p>\n

    \u00a0<\/p>\n<\/div>\n

    #Hugging #Face #scrappy #startup #named #emoji #billion #Nvidia #acquisition<\/p>\n","protected":false},"excerpt":{"rendered":"

    Welcome to Eye on AI. Emily Fo… <\/p>\n","protected":false},"author":1,"featured_media":3819,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[4176,432,6668,809,523,522,769,4741,3070,770,2090,6666,6667,892],"class_list":["post-3818","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance-news","tag-acquisition","tag-billion","tag-emoji","tag-eye-on-ai","tag-face","tag-hugging","tag-jensen-huang","tag-ma","tag-named","tag-nvidia","tag-open-source","tag-open-source-software","tag-scrappy","tag-startup"],"yoast_head":"\nHugging Face goes from a 'scrappy' startup named after an emoji to $13 billion Nvidia acquisition - Finance News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.vaultinsider.top\/?p=3818\" \/>\n<meta property=\"og:locale\" content=\"zh_CN\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Hugging Face goes from a 'scrappy' startup named after an emoji to $13 billion Nvidia acquisition - Finance News\" \/>\n<meta property=\"og:description\" content=\"Welcome to Eye on AI. 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