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Nvidia closes in on Hugging Face acquisition

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Nvidia has agreed to buy Hugging Face for $12.9 billion, The Information reported Wednesday night, citing a source familiar with the matter. Business Insider, which first reported over the weekend that Hugging Face was fielding takeover interest, reported Wednesday night that the talks — which would value the company at more than $13 billion — had not yet produced a signed agreement and could still atomize.

TechCrunch reached out earlier to both Nvidia and Hugging Face for comment, and neither has yet responded. (Nvidia’s silence is particularly noteworthy here as the company has moved quickly in the past to address reports it considers inaccurate.)

Maybe it was destined from the start. Hugging Face, founded in 2016, is one of the most popular hubs where developers share and download open-source AI models. Buying it would give Nvidia a strong foothold in the world of open-source AI, right as open-source developers are doing their level best to catch up to closed AI systems from companies like Anthropic and OpenAI.

Why would Nvidia want that? Most obviously, it comes down to protecting its dominance in AI chips, which, from the outside at least, appears increasingly at risk, even with Nvidia’s aggressive chip-release schedule. Pretty much all of the biggest closed-source AI labs (OpenAI, Google, Amazon, and Anthropic) are now in the process of building their own AI chips to lessen their reliance on Nvidia. A thriving ecosystem of open-source AI models gives customers more alternatives to those closed labs, which in turn keeps more of the market dependent on Nvidia’s hardware. That’s also why Nvidia has already poured tens of billions of dollars into building its own open-source AI models.

Should we be surprised that Hugging Face’s days as an independent outfit appear numbered? Not really. Hugging Face CEO Clem Delangue has spent much of this year publicly aligned with Nvidia’s open-source push, amid a debate that has been building for months, as Washington officials reportedly weighed restrictions on open-weight models. (After Chinese labs like Moonshot AI released systems like its Kimi K3 model that matched leading U.S. models on benchmarks while costing a lot less to run, talk of competitive and national-security concerns appeared to grow in Washington, with some critics of closed labs — like White House advisor David Sacks — suggesting the fears were being fanned by the “duopoly” of Anthropic and OpenAI.)

In an appearance on CBS’s “Face the Nation” earlier this month, for example, Delangue said Hugging Face used an Nvidia-modified version of a Chinese open-source model to defend itself after a cyberattack and pointed to a recent letter — signed by Nvidia CEO Jensen Huang and 24 other companies, including Hugging Face — urging the U.S. government to support open models rather than restrict them. In a separate CNBC interview in late July, Delangue made similar points, citing that same letter while warning that China is “clearly dominating” open-source AI.

The deal would also mark something of a comeback for Nvidia in cloud computing. Nvidia reportedly scaled back its own cloud business, called DGX Cloud, about a year ago. But according to The Information, owning Hugging Face — which already helps developers run their AI models using rented computing power — could give Nvidia a way back into that market without starting from scratch.

There’s also a financial safety net at play. Nvidia has promised to help cover the cost of tens of billions of dollars in cloud computing deals for its customers. If those customers end up not using all the computing power they signed up for, Nvidia could get stuck with it. Owning Hugging Face would give Nvidia the ability to sell that unused capacity to Hugging Face’s customers.

The price marks a huge jump from Hugging Face’s last known value. The company raised $235 million in 2023 in a funding round that valued it at $4.5 billion. That round was led by Salesforce Ventures, with money also coming from Alphabet’s GV, IBM Ventures, and Nvidia itself, among others.

This wouldn’t be Hugging Face’s first brush with an Nvidia offer, either. Hugging Face turned down a $500 million investment offer from Nvidia late last year that would have valued it at $7 billion, the Financial Times previously reported. Hugging Face said at the time it didn’t want a dominant investor that could sway its decisions.

As for why it would say yes now, one could argue that a buyout is different from taking on one giant backer — a scenario that often means ceding control while being pressured to continue growing.

Hugging Face is also still a comparatively small business by revenue in the world of AI. The Information reported it was recently generating about $150 million a year in revenue, up from roughly $100 million just two months earlier.

That growth has enabled the company to get “close to profitability,” as Delangue told TechCrunch last month. Still, a price near $13 billion would be a massive multiple for a company this size and hard to resist.

Not last, the deal would give Hugging Face access to Nvidia’s much deeper pockets just as other, AI infrastructure competitors start to get pulled into other outfits, as suggested by Stripe’s recent deal to acquire OpenRouter, a startup founded in early 2023 that helps customers select different AI models to perform different tasks depending on their needs and budget.

OpenRouter was valued at just $1.3 billion back in May during its Series B round. Stripe reportedly paid more than $7 billion to make it its own earlier this month.

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Desmond Elliot kneels before Gbajabiamila, apologises over APC primary fallout

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Lagos State House of Assembly member, Desmond Elliot, has apologised to the Chief of Staff to President Bola Tinubu, Femi Gbajabiamila, over his conduct during the last All Progressives Congress (APC) primary election in Lagos.

Elliot was seen in a video circulating on social media kneeling before Gbajabiamila and asking for forgiveness, while also appealing to be accepted back into the APC fold in Lagos.

“I’m sorry, I have no excuse. I have nothing other than to say I’m deeply sorry, and I am hoping to be cultured in the future,” Elliot said.

His apology followed a disagreement with the party leadership over the APC primary conducted in May to select its candidate for the Surulere Constituency I seat.

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Elliot had withdrawn from the primary, alleging that his supporters were subjected to intimidation and political pressure during the exercise.

He later rejected the outcome of the election and vowed to challenge the process through the party’s appeal mechanism.

The former actor ultimately lost the APC ticket to Barakat Odunuga-Bakare, who was widely believed to have the backing of Gbajabiamila.

Odunuga-Bakare secured 11,385 votes in the primary, defeating Elliot, who polled 270 votes.

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VIDEO: I Travelled Alone as Governor to Cut Costs — Obi

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The presidential candidate of the Nigeria Democratic Congress (NDC), Peter Obi, has revealed how he reduced the cost of governance while serving as governor of Anambra State.

According to the politician, he deliberately avoided unnecessary spending and travelled without the large entourage usually associated with public officials.

Obi disclosed this on Monday while speaking in Washington, D.C., United States, where he discussed measures he adopted to reduce government expenditure during his tenure as governor.

The former Anambra State governor said he rejected inflated budgets for the renovation of his official facilities, explaining that projects were completed for significantly less than the amounts originally provided for in the budget.

“When I was governor, the budget for refurbishing my office was ₦298 million, but I did everything with ₦48 million. There was also a budget of ₦486 million to refurbish my house, but I completed everything with ₦81 million,” Obi said.

He also spoke about the cost associated with official travels, saying he refused to travel with the number of people that could ordinarily accompany a governor on official trips.

“As a governor, you are supposed to travel with 30 people to several places. Over the years I was governor, I didn’t use 16 percent of my travel allowance because I wasn’t travelling with anybody. I was the only person invited; nobody invited them,” he said.

The NDC candidate has repeatedly argued that Nigeria’s limited resources should be directed towards productive sectors capable of improving the living conditions of citizens.

The former governor recently travelled to Germany and the United Kingdom for a series of engagements focused on issues including democracy, electoral integrity, poverty, education, corruption and healthcare.

Obi disclosed the European trip in a statement on his social media platforms after returning to Abuja from visits to Benue and Plateau states.

“After returning to Abuja on 8th September 2026, following our visits to Benue and Plateau States, I travelled to Europe, first to Germany and then to the United Kingdom,” he stated.

According to Obi, his discussions with international partners centred on practical steps that could contribute to Nigeria’s development, with particular attention to education.

He said he was encouraged by the willingness of international partners to support Nigeria, especially in the education sector.

Obi described education as the most important investment Nigeria could make in its citizens, stressing that sustainable national development would remain difficult without building the knowledge, skills and capabilities of the country’s people.

He also renewed his call for a change in the direction of Nigeria’s economy, urging the country to move away from excessive consumption and dependence.

“We must intentionally transition Nigeria from consumption to production, from dependence to productivity, from wasteful practices to responsible resource management, and from division to a common national purpose,” he said.

The NDC presidential candidate said his broader objective was to build a country where children would have access to quality education, democracy would reflect the wishes of voters, healthcare would be accessible and public resources would be managed responsibly.

He added that every Nigerian should have a fair opportunity to live a dignified and productive life.

Obi’s latest engagements come as political activities intensify ahead of the 2027 general elections, with major presidential contenders increasingly stepping up consultations and engagements within and outside Nigeria.

The presidential candidate of the African Action Congress, Omoyele Sowore, has also travelled to the United States and Canada as part of a North American tour connected to his 2027 campaign.

The AAC said Sowore’s absence from Nigeria would not affect the #Sowore2027 campaign, maintaining that its activities would continue to focus on what it described as revolutionary transformation, equal rights and justice.

President Bola Tinubu has also travelled to Europe, with the Presidency saying the President departed Abuja for a three-week vacation as part of his annual leave.

His Special Adviser on Information and Strategy, Bayo Onanuga, said Tinubu’s first destination was London, United Kingdom, and that he would return to Nigeria at the end of the working vacation.

The political movements are taking place against the backdrop of preparations for the 2027 presidential and National Assembly elections. The Independent National Electoral Commission commenced the official campaign period on August 19, while the elections are scheduled for January 16, 2027.

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