The Real Reason Nvidia Paid 12,9 Billion For Hugging Face? Dietmar's Opinion 💡

The Real Reason Nvidia Paid 12,9 Billion For Hugging Face? Dietmar's Opinion 💡

September 2, 2026 · 10 min · Season 15 · Episode 35

About this episode

Dietmar Fischer discusses Nvidia's strategic acquisition of Hugging Face and its implications for the AI landscape.

Why Nvidia May Pay $12.9 Billion to Keep AI Open Why would Nvidia reportedly pay $12.9 billion for Hugging Face, a company with approximately $150 million in annualized revenue? The conventional answer is growth. But the more interesting answer is strategic control, says Shreyasee Majumder, Social Media Analyst at GlobalData . In this episode of Beginner’s Guide to AI , Dietmar Fischer examines the reported Nvidia Hugging Face acquisition and the larger battle behind it. Hugging Face is not only a website where developers download and test AI models. It is a central platform for open-source AI models, datasets, applications, inference, fine-tuning, infrastructure, and developer collaboration. That makes Hugging Face strategically important to Nvidia. Google, Amazon, Microsoft, OpenAI, and other major technology companies are developing their own AI chips, closed models, and integrated infrastructure. Their goal is to control more of the AI value chain. Nvidia, however, still benefits when developers and companies can choose open models and run them on Nvidia hardware. This creates the central argument of the episode: Nvidia may need open-source AI not only as a technical…

People in this episode

Host: Dietmar Fischer

Guest: Shreyasee Majumder

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Mentioned in this episode

Organizations: Nvidia, Hugging Face, GlobalData, Google, Amazon, Microsoft, OpenAI

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