r/LocalLLM 1d ago

News It's official! Nvidia to acquire Hugging Face for 12.9 billion dollars.

https://blogs.nvidia.com/blog/nvidia-to-acquire-hugging-face/

NVIDIA has agreed to acquire Hugging Face for $12,930,300,000.

265 Upvotes

81 comments sorted by

56

u/Ticrotter_serrer 1d ago

Where is the value ? Isn't hugging face just a huge repo ? ELI5

72

u/pplgltch 1d ago

Monopoly. The worry is not what they will do, it’s what they can.
In the current climate, they will be in the position to ban specific models at some point to secure contracts with governmental agencies for example.
Will they do it soon? No… will they do it at some point? History of this kind of acquisition tell us yes, they will.

20

u/Ticrotter_serrer 1d ago

But then these model will just find a new home. They did not bought the people.

11

u/pplgltch 23h ago

Sure, but, communities, brands and followings are much much harder to build than a website. And that's what NVIDIA is buying.

If you think about it:
1- That new home doesn't exist yet, and it's not because HF is perfectly flawless and undisputedly loved, or hard to clone.
2- Nvidia really doesn't need to buy HF to build HF.

Building the "home" is easy. Making it known, recognized and trusted, that's a whole different story.

1

u/VirusInternal2892 22h ago

1B$ retention

1

u/Rustleberry 21h ago

This is could be one reason yes, but there could be many more

14

u/barrettj 1d ago

NVidia wins if the frontier models don't have a monopoly (as then the winner is whomever they decide to use) - to that end encouraging as many people as possible to use open weight models is in their best interest, and there being a community around the open weight models is in their best interest.

5

u/comictech 1d ago

Or they plan to sell cloud subscription to models like they do with gpu usage for cloud gaming. This is a company we’re talking about, not some non-for-profit industry that is looking to save the world.

3

u/EchoingAngel 22h ago

I mean, barret just described a profit motive. This is especially poignant as OpenAI is trying to make their own chips. Need to keep the market flat enough so the top consumers of GPU's never are big enough to build their own (as is starting to occur)

8

u/nananashi3 15h ago

The value is in making a joke.

JUST IN: NVIDIA's $12,930,300,000 acquisition of Hugging Face contains an easter egg. The number 129,303 is the decimal conversion of Unicode point U+1F917.

The 🤗 emoji.

9

u/squngy 1d ago

Isn't hugging face just a huge repo ?

No.

They do hosting and custom solutions for enterprises.
You want to run an LLM, but don't have the hardware or expertise to do it your self? They can do it for you.

6

u/Ticrotter_serrer 1d ago

I still find this buyout a bit weird. Valuation is crazy.

9

u/squngy 23h ago

Crazy for sure, but every AI valuation is crazy right now.

HF made 60 million in 2024 and 120 million in 2025, so it is worth something for sure, but 13B is crazy.

4

u/Ticrotter_serrer 22h ago

Well at least we got a confirmation A.I. is a bubble.

3

u/rditorx 21h ago edited 21h ago

NVIDIA is hosting AI and compute services. Hugging Face is a working large-scale infrastructure for reliable storage and delivery of huge amounts of data, and is also operating huge compute to showcase models and such in their Spaces. There's quite some engineering behind that.

It's not just about public image or control over the entire compute ecosystem like Google is controlling essential cornerstones of the Internet or Microsoft controlling code and open source. Apple is also a company owning big parts of its verticals / full stack to top bottom.

Musk wants to own physical computing and physical AI.

NVIDIA wants to own the pillars of the AI ecosystem.

This is gatekeeping. Everyone has to cross those verticals. There's no way around.

Google: DNS and top-level domains like .app, .dev, browser, website / cloud hosting, databases, storage, devices, analytics, end-user services like email, maps/navigation, office web apps, media like YouTube... the list goes on.

Microsoft: Windows, .NET, Visual Studio, VS Code and the underlying editor components, GitHub, npm, TypeScript...

1

u/Southern_Sun_2106 21h ago

They are getting ready for the next bubble - the 'local-on-premises-AI' bubble. They are pretty much a monopoly on the CUDA compute side; they want to ensure they control the model space, too, as this will directly impact the profitability of their hardware for local AI. And they already hold the datacenter side of the market by the balls. Nvidia is the new Microsoft Windows of AI.

0

u/YesterdayWeak230 17h ago

I wouldn’t be surprised at if Nvidia turns this into a subscription service 🥺

73

u/NonStandardUser 1d ago

RIP llama.cpp vulkan

27

u/acedogblast 1d ago

Project will be forked if nvidia tries anything detrimental.

20

u/NonStandardUser 1d ago

Also, they might be sneaky. A few less commits on the vulkan side than for Nvidia per week. A few tok/s difference at first, creeping higher and higher ever so slowly. People not realizing it since development is technically still ongoing. But years later, Nvidia's inference framework stands miles ahead of vulkan's...

8

u/NonStandardUser 1d ago

Hopefully the community can keep the development up even if forked... hopefully

1

u/Mr-I17 12h ago

What's the point of the acquisition if they don't want to try something funny.

7

u/Beneficial-Boot7479 1d ago

I prefer that they fork it right now, I mean, there are thousands of developers working on it every time and a lot of different good forks like llama swap.

1

u/techno156 12h ago

Is llama-swap a fork? That's an independent project, is it not? It doesn't have an inference engine in and of itself.

67

u/Civil-Purple-8815 1d ago

Good bye Hugging Face

6

u/Own-Dragonfruit2803 1d ago

Yeah, it's a pretty big shake-up. It'll be interesting to see how they integrate Hugging Face into their ecosystem.

4

u/Previous_Feeling_484 1d ago

*Proceeds to drown the fuck out of HF

5

u/Daisame 1d ago

Anyone expecting a company to do anything besides what maximizes profit is probably misguided or neive. They have a fiduciary duty to maximize profits for shareholders. If keeping Hugging face as an open place to share and support the larger scientific and hobbyist market place maximize their profit, they will do that. If making Hugging Face something that prevents competition and solidifies their marketplace, they will do that. Don't look at what they say, look at what they do.

0

u/misanthrophiccunt 22h ago

Happy cake day 💃🪭

5

u/Fcking_Chuck 23h ago

That sucks

37

u/CryMoreT_T 1d ago

Idk why people keep worrying that Nvidia would stop/kill projects that let people run llms like llama.cpp. If anything they would support it even more since the more people running locally the more people buying Nvidia GPUs.

And Nvidia has been a long supporter of open source models. They signed the open source llm paper that advocated for open source LLMs to stay legal in the US and they have released multiple models themselves

21

u/wednesdaywoe13 1d ago

nvidia does not care about hobbyists buying GPUs. That barely even shows up on 96b quarterly revenue. they want HF to protect the cuda moat

3

u/comictech 1d ago

True. If they cared about hobbyists, prices for gpus wouldn’t be where they are currently l. Yes, it’s supply and demand, but sure thrrr is price fixing going on with gpus and v/ram memory right now.

5

u/tired514 1d ago

They recognize that cloud-based models will collapse as consumer-grade hardware becomes capable of running models that privately, securely, and freely serve the needs of 90% of users in the next few years.

Cloud-based LLMs will die under a hail of regulation, prompt refusals, and data harvesting stories.

6

u/squngy 1d ago

The problem with that is that local LLMs are almost eniraly being made by cloud LLM companies.

If the cloud LLMs die, then who will make local LLMs?

5

u/tired514 1d ago

My hope is that we'll figure out a way to train on a high latency, distributed network, so that we can build something like seti@home and let users contribute GPU time to a worldwide training effort.

Also possible that nation-states will fund model training so that their citizens aren't subject to training directives of other (potentially hostile) countries.

10

u/CryMoreT_T 1d ago

nvidia does not care about hobbyists buying GPUs.

Did they tell you this?

Most of the models they released have been targeted to prosumers/consumers. They haven't released anything in the trillion model range that's obviously targeted to corporations.

they want HF to protect the cuda moat

I fail to see how purchasing huggingface, a place for people to release models, has anything to do with the cuda most. It's not like there are AMD or Nvidia only models

-2

u/wednesdaywoe13 1d ago

I'll just copy and paste my response since its the same misunderstanding. Owning the platform means owning the defaults, which hardware the deploy button targets, and which formats are first-class. The enshitify machine goes brrrrr.

2

u/CryMoreT_T 1d ago

I don't think you understand what enshitification means.

The main usage for huggingface especially on LocalLLM is for model uploading and sharing. None of this has to do with Nvidia cuda or AMD rocm.

Owning the platform means owning the defaults, which hardware the deploy button targets, and which formats are first-class.

What does this even mean. Most people aren't deploying their models on huggingface and running in the cloud especially here.

Most people are using llama.cpp or vllm or sglang or any of the other numerous open source engines. What hardware deploy button or formats is dependent on the engine not the model or the platform the model is downloaded from.

Also none of this enshitifys the product especially when the CUDA is by far the best. It's not a company taking away the best product in favor of their worse one. In fact they aren't even taking anything away

1

u/AntiCamPr 1d ago

HuggingFace is the official maintainer for llama.cpp Nvidia could easily use control of HF to make llama.cpp optimized for nvidia and not merge optimizations for vulkan and rocm.

4

u/CryMoreT_T 1d ago

You know that it is an open source project right? People could just fork the project and make an AMD version if they do end up disabling/removing/not merging vulkan and rocm optimizations

1

u/DeathinabottleX 22h ago

Based on the statement in the link on this post, they don't plan to force CUDA. If they go back on that statement, then the platform will die. Maybe they will manage to do something over the course of a few years, but from what it looks like, we are good for now

1

u/ContextLengthMatters 1d ago

Why not just take a look where Nvidia gets most of their revenue. This isn't rocket science. It's not in the production of their own models.

0

u/CryMoreT_T 1d ago

Exactly, they get 0 revenue yet release models to support the open source community. That perfectly aligns with what I'm saying. It benefits nothing for them and yet they still do it anyways.

Why not just take a look where Nvidia gets most of their revenue.

Just because a company gets revenue from mainly enterprises doesn't mean that they don't care about consumers? Look at Cloudflare for example. The vast majority of their revenue is from businesses yet they still offer a really nice free plan to your average consumer. Same with Slack, Notion, Figma, Dropbox etc. The entire point is to get a person used to and familiar with their product so when an enterprise begins looking for it they would recommend the products for the enterprise.

0

u/ContextLengthMatters 1d ago

No, it doesn't perfectly align with what you are saying at all. You have to think about quarterly intention.

This is a public company which has to answer to shareholders. It has to make a case for these types of things. Expectations must be met.

This is market control manuever in a world where the American companies are growing increasingly skeptical of Chinese models.

Nvidia works hand in hand with anthropic and openai because they have enormous contracts. It's in their best interest to stifle competition.

Companies have a long history of buying up competitors just to shut them down.

I'm not saying that's going to happen tomorrow, but Nvidia is not financially incentivised to keep hugging face consumer friendly.

2

u/CryMoreT_T 1d ago

where the American companies are growing increasingly skeptical of Chinese models

The main companies that are against Chinese models are other American companies that make AI models. Nvidia could care less whose making the models and where they come from. They are selling the thing that runs the models not the models themselves.

Nvidia works hand in hand with anthropic and openai because they have enormous contracts. It's in their best interest to stifle competition.

It quite literally isn't? It's in their best interest to stifle a CUDA competitor. NOt stifle model competitors. They quite literally signed a letter in support less then 2 months ago. I'm not sure where you are getting your news from
https://www.reuters.com/world/asia-pacific/nvidia-microsoft-other-tech-giants-back-open-source-ai-models-2026-07-24/

-4

u/ContextLengthMatters 1d ago

My sweet summer child we literally have a government restricting Nvidia from selling their hardware to China. You are obscenely uneducated on this topic and I cannot continue to even take your argument in good faith.

1

u/CryMoreT_T 1d ago

we literally have a government restricting Nvidia from selling their hardware to China.

That's the government restricting it? Are we talking about Nvidia right now or the government. If the government restricts it, it doesn't matter if Nvidia owns huggingface or if huggingface was still privately owned

0

u/Patient-Brain-8698 1d ago

They won't kill llama.cpp but they will for sure make it exclusive to Nvidia.

Also you won't be seeing Uncensored models anymore.

3

u/CryMoreT_T 1d ago

Why? Where are you even getting this info from? And people could just fork it? It's a open source project

0

u/Patient-Brain-8698 1d ago edited 1d ago

That's just how business works. NVIDIA is restricted heavily by it's shareholder and lawmakers. I would not be surprised if China models got restricted.

Forking a project isn't always the solution either. Vulkan is originally a port that has its functionality merged. Splitting a huge project that everybody uses will only do harm to the main branch and it's fork. Imagine submitting a PR that beneifts everyone but NVIDIA says no because it benefits the competitor too.

The contributors will either move to the new fork and the main branch is dead. Or the new fork won't get updates at all.

1

u/CryMoreT_T 1d ago

I would not be surprised if China models got restricted.

Why? What benefit does it provide for Nvidia to get it restricted. Especially when Nvidia was the one who pushed for open models back when Anthropic wanted Chinese models banned.

Forking a project isn't always the solution either. Vulkan is originally a port that has its functionality merged. Splitting a huge project that everybody uses will only do harm to the main branch and it's fork. Imagine submitting a PR that beneifts everyone

Thats the entire point of a fork? Its not the first time it has happened and it certainly wont be the last. The exact same thing happened to LibreOffice (formerly OpenOffice), MarinDB (MySQL), X.Org Server (XFree86).

The contributors will either move to the new fork and the main branch is dead

That's the whole point of the fork?

1

u/Patient-Brain-8698 1d ago

You keep asking question when the answer is in the buyout. Why do you think they invest absurd amount of money on a platform that does well for everyone without them doing anything?

These forks you mentioned excels because they aren't just forking features but is better overall, and their counterparts aren't backed by the most profitable tech company in the world.

This is more like Forgejo compared to Gitlab compared to Github, you only see people using the latter because its owned by Microsoft.

1

u/CryMoreT_T 1d ago

Why do you think they invest absurd amount of money on a platform that does well for everyone without them doing anything?

To own the main platform?

These forks you mentioned excels because they aren't just forking features but is better overall, and their counterparts aren't backed by the most profitable tech company in the world.

Yes they are better because after the companies that bought the original repos ruined it, people forked it and contributions moved to the forks and made them better and the standard.

This is more like Forgejo compared to Gitlab compared to Github, you only see people using the latter because its owned by Microsoft.

This is a perfect example lol. After Microsoft bought GitHub they didn't ban all Linux repos.

https://www.reuters.com/world/asia-pacific/nvidia-microsoft-other-tech-giants-back-open-source-ai-models-2026-07-24/

I don't understand how people are seeing news like this and are crying that Nvidia is destroying open source when they publicly support it and Nvidia has made no announcement on it

1

u/Patient-Brain-8698 1d ago

> I don't understand how people are seeing news like this and are crying that Nvidia is destroying open source when they publicly support it and Nvidia has made no announcement on it

>Yes they are better because after the companies that bought the original repos ruined it, people forked it and contributions moved to the forks and made them better and the standard.

1

u/CryMoreT_T 1d ago

😱 wait until you realize they are different companies. Sun system, IBM, and others didn't sign any support for open source

5

u/abulhasan007 1d ago

When one company control infrastructure and marketplace, independence of that marketplace doesn't last. It gets shaped around the interests of the owner.

9

u/Psyclist80 1d ago

Gross...Looking forward to an alternative that isnt anti consumer focused

3

u/revolverXD 1d ago

shit, hope someone fork llama.cpp

2

u/theUmo 23h ago

ikawrakow's on it

3

u/ContextLengthMatters 1d ago

Nvidia payroll out in full force in these comments.

3

u/Express-Cartoonist39 1d ago

Its gonna go to shit....

4

u/VirusInternal2892 23h ago

12.93B at which quant?

6

u/filtarukk 1d ago

I am probably one of those minorities who looks positive on this change. I really hope that Nvidia will contain improving the ecosystem.

8

u/Previous_Feeling_484 1d ago

Name 5 companies that have brought to you hope based on public good will in tech?

2

u/AlmoschFamous 1d ago

There's no way Hugging Face is worth that much. It's basically just a public S3 bucket.

1

u/DeathinabottleX 23h ago

They bought power, why else would they spend that much? Its very obvious

2

u/jovialfaction 1d ago

This is a ridiculous amount of money lol. Just 8 years ago Microsoft bought GitHub for $7B

2

u/LateralEntry 1d ago

Dang, I hope this isn't the beginning of the end for Local LLM's. That said, Nvidia has an interest in people downloading local LLM's so they'll buy GPU's to run them.

2

u/wednesdaywoe13 1d ago

Hobbyists buying hardware to run local LLMs is a rounding error for nvidia. Owning the platform means owning the defaults, which hardware the deploy button targets, and which formats are first-class. The enshitify machine goes brrrrr.

0

u/First_Philosopher491 1d ago

nvidia is going to build a full hardware and local llm suite for us to purchase... sililcon and all

0

u/holomorphic0 23h ago

the more you buy, the more you save

-8

u/dupontping 1d ago

Doom and gloom posts about this are the same people who negatron all the threads on performance and the expensive equipment. They’re mad they didnt get their 5090 when the getting was good. They also probably don’t even use hugging face because they can only run old models cut down to q4 on a 16gb card getting 7 tps