AI · Oct 28, 2026
Thin, Light and Built for Everything: NVIDIA RTX Spark Windows Laptops Gain New Models, Agent Tools and GamesHugging Face’s Delangue vows to keep fighting for open source as Nvidia’s deal loses its champion
· Updated · Signal Desk newsroom
Analysis of reporting by TechCrunch. How we work

Nvidia’s $12.9 billion Hugging Face acquisition is still slated to close in the first half of 2027, but the executive who championed it and lobbied for open weights is gone. Delangue’s defiant post is reassurance, not governance; neutrality commitments now matter more.
Key takeaways
- Nvidia agreed in September to buy Hugging Face for $12.9 billion; TechCrunch says closing is still slated for the first half of 2027.
- Clément Delangue called Huang’s exit a really sad day and promised to fight for open source harder than ever.
- The Justice Department has been asking how the deal would affect competition, since it hands Nvidia a major model-distribution channel.
- Nvidia’s open work includes a $6 billion Poolside deal and an expanded Nemotron family with a 120-billion-parameter enterprise agent model.
- Hugging Face would be Nvidia’s second-largest acquisition, behind its $20 billion purchase of Groq’s assets in December 2025.
A deal without its sponsor
In September Nvidia agreed to buy Hugging Face, the main hub for open AI models, for $12.9 billion (deal coverage). TechCrunch reports the deal is still slated to close in the first half of 2027. It would be Nvidia’s second-largest acquisition, behind its $20 billion purchase of Groq’s assets in December 2025. The executive who championed it, and who pushed hard for open-weight AI in Washington, is now gone.
Hugging Face CEO Clément Delangue called it a really sad day and promised to keep fighting for open source harder than ever. The subtext: people who rely on open models are asking whether Nvidia’s commitment was company strategy or one leader’s conviction (analysis). TechCrunch’s requests for comment on whether Hugging Face had spoken with interim CEO Colette Kress went unanswered.
What open weights are worth
Open-weight models are among the most useful things in AI right now. They let researchers inspect systems, let companies run models on their own infrastructure and keep the market from collapsing into a few closed providers. Nvidia’s former CEO made that case in a July policy letter signed by 25 companies, arguing open models strengthen competition, safety and sovereignty. Losing that voice at the top of the most important AI hardware company is a real setback for the open camp, one of the five losses TechCrunch lists.
The structural question
TechCrunch notes the Justice Department has been asking how the acquisition would affect competition, because it gives Nvidia control of a major distribution channel for AI models. With a strong founder in charge, the bet was that his values would protect Hugging Face’s neutrality. Without him, the deal looks more like a chip giant owning the shelf where everyone else’s models sit (earlier analysis). That concern deserves sharper scrutiny, not less.
There are reasons for some optimism. Nvidia’s open work runs deeper than one person: TechCrunch points to the $6 billion Poolside deal to build an American open AI ecosystem and the expanded Nemotron open-weight family, including a 120-billion-parameter model for enterprise agents. Selling chips is easier when many people build and run many models, so openness still serves Nvidia’s interests.
Goodwill isn’t governance
The two tests: whether interim leadership publicly reaffirms the open-model strategy, and whether Hugging Face gets binding neutrality commitments before closing. A cheerful post on X is not governance. If the platform’s openness rests only on goodwill, the open-source community should push for more. More in our Nvidia coverage and startups coverage.
Who feels it
- Open-source developers
- The main model hub’s neutrality depends more on deal terms than one executive.
- Regulators
- Leadership change gives antitrust reviewers fresh reason to look.
- Enterprises
- Open-weight bets depend on Nvidia’s open roadmap holding.
- Policy advocates
- The open-weight coalition loses a high-profile spokesperson.
What to watch
- Any interim-CEO statement on open models and the deal.
- Justice Department moves on its inquiry.
- New Nemotron or other open-weight releases.
- Whether the 2027 close slips.
FAQ
Is Nvidia still buying Hugging Face?
TechCrunch reports the $12.9 billion deal is still slated to close in the first half of 2027.
What did Hugging Face’s CEO say about Jensen Huang leaving?
Clément Delangue called it a really sad day and vowed to keep fighting for open source harder than ever.
Why is the Justice Department looking at the deal?
It has asked how giving Nvidia control of a major AI model distribution channel would affect competition.
Companies: NVIDIA
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