Jensen Huang, Nvidia\u2019s chief executive, was a signatory of an open letter earlier this year from major tech firms that advocated for open models and warned against government regulation that would stifle their use. Huang pledged that Nvidia would keep Hugging Face open after acquiring it.<\/p>\n
\u201cHugging \u200cFace will remain an open platform for the entire AI ecosystem,\u201d said Huang, adding that his company\u2019s chips would not be required to \u200bbuild on or deploy through Hugging Face.<\/p>\n
skip past newsletter promotion<\/a>Free newsletter | Every weekday<\/p>\n Sign up to Business Today<\/p>\n Get set for the working day \u2013 we’ll point you to all the business news and analysis you need every morning<\/p>\n after newsletter promotion<\/p>\n Under the deal, Nvidia will pay about $11.9bn to Hugging Face investors, while offering an equity-based retention program of up to $1bn for employees who join Nvidia.<\/p>\n For Nvidia, building up its open source business may help it cushion a demand slowdown from customers such as \u2060Meta, OpenAI and Microsoft, which are developing their own AI chips to cut reliance \u200bon its costly and \u200bsupply-constrained processors. Several Chinese chip-making firms have also made recent advancements<\/a> that could further disrupt the balance of power within big tech, though they face strict international export controls.<\/p>\n It has been a volatile year in the market for chipmakers, with a chip stock selloff in July<\/a> wiping $1tn from the market caps of leading firms. Nvidia shares bounced back in August, though, with a strong revenue forecast leading to the second-biggest one-day gain in market history \u2013 adding $442bn to the company\u2019s market value.<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/09\/1788457341_96_500.jpg\")
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