
AI-generated summary
Huida is the world's leading AI chip manufacturer, and its market value has soared in recent years due to the key role of GPUs in generative AI. Hugging Face is a well-known open source AI model and developer platform. Huida’s previous largest acquisition was the purchase of Mellanox in 2019, followed by the acquisition of Groq assets last year.
Huida CEO Jensen Huang. (File photo)
[Financial Channel/Comprehensive Report] Huida officially agreed on the 3rd to acquire the open source artificial intelligence (AI) platform Hugging Face for US$12.9 billion (approximately NT$408.9 billion), further extending its business territory from AI chips to models, software and developer platforms. Huang Renxun pointed out in a PO post on the social platform that the Hugging Face open source model can strengthen security and network security, accelerate innovation and promotion, and protect national sovereignty.
CNBC reported that the transaction was first disclosed by "The Information" last week. Huida CEO Huang Renxun posted on his blog on Thursday that after the acquisition is completed, Hugging Face will remain an open platform serving the entire AI ecosystem.
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Huang Renxun said that the two parties will jointly expand the scale of the Hugging Face platform, strengthen the infrastructure, and enable more developers and institutions around the world to use AI. Huang Renxun also pointed out in a PO article on the social platform
Huida announced on the 3rd that it has acquired the open source artificial intelligence (AI) platform Hugging Face. (Picture taken from Huida official website)
Clément Delangue, CEO of Hugging Face, also revealed, "This summer I took the initiative to contact Jen-Hsun Huang to discuss cooperation. A few weeks later, we reached an agreement." Delangue emphasized that the reason why he took the initiative to contact Hugging Face was that Hugging Face was the perfect home for the company. The negotiations between the two parties progressed very quickly and an agreement was reached soon.
According to reports, this acquisition is the second largest acquisition in Huida's history, second only to the US$20 billion (approximately NT$634 billion) acquisition of the assets of chip manufacturer Groq in December last year. Prior to this, Huida's largest transaction was the acquisition of Israeli chip manufacturer Mellanox for nearly US$7 billion (approximately NT$221.9 billion) in 2019.
Huida has become the world's most valuable company due to huge market demand for its GPUs, which are the driving force behind the boom in generative artificial intelligence (AI). The launch of Hugging Face marks a major bet by Huida on the popular AI platform and once again proves that it is more than just a chip company.
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AI outlook — possibilities, not facts
Huida will integrate Hugging Face’s services with its AI Enterprise platform in the coming months.
Likely · Within months
The deal will trigger a preliminary review of its antitrust compliance by the U.S. Federal Trade Commission (FTC)
Possible · Within months

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