OpenAI sparked Hugging Face bids with early investment offer ahead of Nvidia's $13 billion deal

OpenAI attempted to invest $100 million in Hugging Face before the open-source AI platform agreed to a roughly $13 billion acquisition by Nvidia this month, CNBC reports. The OpenAI overture triggered a wave of competing deal interest that ultimately culminated in Nvidia's bid.

The $13 billion valuation marks a significant premium for Hugging Face, which has positioned itself as a hub for open-source machine learning models and collaboration. OpenAI's failed investment attempt underscores the strategic value AI infrastructure players see in controlling open-source distribution channels as competition intensifies around generative AI deployment.

Nvidia's acquisition represents one of the largest AI deals to date and extends the chipmaker's reach beyond hardware into the software and platform layer. The deal comes as Nvidia seeks to secure its position across the full AI stack while rival providers look to reduce dependence on its GPUs. Hugging Face hosts hundreds of thousands of models and datasets, making it a critical piece of the open-source AI ecosystem that both OpenAI and Nvidia view as strategically important.