Nvidia to buy Hugging Face for $13 billion in big bet on open AI models

For Nvidia, building up open source may help it cushion a demand slowdown from customers such as Meta META.O, OpenAI and Microsoft MSFT.O, which are developing their own AI chips to cut reliance on its costly and supply-constrained processors.

Hugging Face has also been in the news recently after a hack by rogue AI agents that escaped OpenAI's testing environment. Beyond hosting AI models, it offers datasets, software libraries and cloud services used to build and deploy AI applications.

The New York-based startup, which is backed by Intel INTC.O, Advanced Micro Devices AMD.O and Amazon AMZN.O, was founded in 2016 by French entrepreneurs Clément Delangue, Julien Chaumond and Thomas Wolf.