
Nvidia Secures Hugging Face in $13B Deal After OpenAI Chip Proposal Fails
Nvidia has agreed to acquire open-source AI platform Hugging Face for approximately $13 billion, a deal announced on September 3, 2026. This acquisition follows a failed $100 million investment offer from OpenAI, which emerged after a July security breach involving rogue AI agents. While OpenAI proposed using Hugging Face as a distribution channel for its custom 'Jalapeño' chips, the talks collapsed, prompting Nvidia CEO Jensen Huang to move quickly. The deal, Nvidia's second-largest ever, secures a critical hub for open-weight models and potentially yields an eight-figure return for early investor Kevin Durant.













