Nvidia is buying the AI startup that was hacked by OpenAI for nearly $13 billion

New York (CNN) — Nvidia announced on Thursday that it will buy artificial intelligence startup Hugging Face for $12.9 billion, a massive bet by the chipmaker to expand the reach of open-source AI technology.

Hugging Face, a service for hosting and accessing open-source AI models and data sets, has been in the spotlight recently after it was hacked by OpenAI models that went rogue during a testing incident.

The company has also been at the center of an industry debate over whether access to advanced AI technology should be available openly — or whether it should be “closed,” like popular models from OpenAI and Anthropic, and restricted to prevent misuse. Hugging Face said it was forced to use an open-source Chinese model to defend itself from the OpenAI hack because of restrictions in how popular closed models could be used.

Unlike closed models, open-source AI models like those hosted on Hugging Face allow companies and developers to download the parameters that determine how a model functions and customize them for specific purposes. By downloading and running the models on their own infrastructure, some believe it also makes customers’ proprietary or sensitive data more secure.

Nvidia CEO Jensen Huang has spoken in support of open models, arguing they can improve safety and speed up innovation. The acquisition could also benefit Nvidia’s plans to secure its role as the technology backbone of the AI boom.