Nvidia Acquires AI Firm Hugging Face for $12.9 Billion

US chip giant Nvidia announced Thursday it has signed an agreement to acquire AI company Hugging Face for $12.9 billion. Hugging Face is known for its platform that facilitates the sharing of AI models and datasets. The acquisition will give Nvidia ownership of these extensive data repositories.

Nvidia CEO Jensen Huang stated, "Hugging Face will remain a platform for the entire AI ecosystem. Together, we will expand the platform, strengthen its infrastructure, and broaden access to artificial intelligence for developers and institutions worldwide." This deal marks Nvidia's second-largest acquisition, following its $20 billion purchase of Groq in December.

In related news, Nvidia is also establishing a campus in Kiryat Tivon, Israel, a region sometimes referred to as "Silicon Valley in the Jezreel Valley." Nvidia recently became the first company to reach a valuation of $5 trillion.