Key Takeaways

• Nvidia announced it's acquiring AI platform Hugging Face for $12.93 billion.

• Hugging Face's platform is used by over 200,000 companies for AI development and deployment.

Nvidia is buying Hugging Face for $12.93 billion, in a move to expand its reach in the AI ecosystem. 

The purchase will give Nvidia control over what's become a leading platform for open-source AI development, and could help introduce Nvidia to new customers. More than 200,000 companies use the Hugging Face platform to "discover, evaluate, customize and deploy AI," according to a release.

Nvidia (NVDA) CEO Jensen Huang said that the AI chip leader intends to "scale Hugging Face's platform, strengthen its infrastructure and expand access to AI for developers and institutions worldwide," which could bolster Nvidia's efforts to grow its business beyond chips.  

Huang, who's long told investors to think of Nvidia as more than just a chip company, has been talking up the company's software offerings in recent months. Nvidia has also been working to make its mark in the world of physical AI capabilities , partnering with a number of autonomous vehicle makers and rideshare platforms to make its own self-driving software .

Nvidia has taken on an increasingly important role on the financial side of the AI industry as well—a concern for many investors worried about an AI bubble.

In a televised interview with CNBC this morning alongside Hugging Face co-founder and CEO Clem Delangue, Huang said the deal would help because "Nvidia benefits whenever AI advances."

Nvidia shares climbed about 1.5% in recent trading, leaving them up over 20% from the start of the year.

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