The potential deal would represent a major expansion for the chipmaker, which already participated in a previous funding round for the startup in 2023.
An acquisition would allow Nvidia to deepen its relationship with the global developer community and potentially funnel more AI workloads toward its own hardware.
Hugging Face currently serves as a central hub for the industry, hosting millions of datasets and models that researchers use to create new technology.
By bringing this infrastructure in-house, Nvidia could secure a more dominant position in the software ecosystem that powers modern AI development.
However, a sale to Nvidia could jeopardize the neutrality that has made Hugging Face a standard in the field.
The platform is currently valued for its independence, supporting hardware and models from various industry competitors like Intel and AMD.
While Microsoft also previously met with Hugging Face, those talks are no longer ongoing, leaving Nvidia as a primary suitor during a period of aggressive capital expenditure on private tech investments.