GoKawiilOpenAI offered Hugging Face $100M before Nvidia's $13B acquisition
Sources say OpenAI proposed investing $100 million in Hugging Face, with talks including using Hugging Face as a distribution channel for OpenAI's custom Jalapeño chips built with Broadcom. Those discussions collapsed early, and Nvidia later announced a roughly $13 billion deal to acquire Hugging Face on Sept. 3. AMD was also reportedly in separate talks with Hugging Face around the same time.
GoKawiil's interpretation of the reporting above, not reported fact.
The episode suggests intensifying competition among chipmakers and AI labs to control access to open-source AI distribution platforms, which could shape how developers deploy custom silicon. Sources say Nvidia CEO Jensen Huang was displeased by OpenAI's semiconductor ambitions, hinting at friction between Nvidia and a company it has invested $30 billion in. The deal reinforces Nvidia's growing role as both investor and acquirer across the AI ecosystem.
- OpenAI reportedly offered $100 million to invest in Hugging Face before Nvidia's acquisition.
- The proposed deal involved Hugging Face distributing OpenAI's in-house Jalapeño chips made with Broadcom.
- AMD was also separately in talks with Hugging Face while Nvidia pursued its $13 billion purchase.
Source: cnbc.com — Kate Rooney, 2026-09-28
Published there as: “OpenAI sparked Hugging Face bids with early investment offer ahead of Nvidia's $13 billion deal”
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