😺 Nvidia's buying Hugging Face for $12.9B

Aug 27, 2026
7 minute read

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Welcome, humans.

AWS and Nvidia already run one of the biggest AI computing partnerships on the planet. Today they decided that wasn't quite enough.

The two just announced 2 million additional Nvidia GPUs (the chips that do the heavy lifting for training and running AI) landing across AWS's global data centers by 2027-2028, stacked on top of the million-plus they'd already promised earlier this year. A chunk of that, 100,000 GPUs, is being walled off just for U.S. government work.

At this point Nvidia isn't just selling picks and shovels for the AI gold rush. It's buying the land next door and building a subway line to get you there faster. Somewhere at AWS, someone in billing is quietly adding a row to a spreadsheet.

Here’s what happened in AI today:

  • 😺 Nvidia agreed to buy Hugging Face, the "GitHub of AI," for $12.9B

  • 📰 Meta scrapped a second AI-driven layoff wave after employee backlash

  • 📰 Google moved its AI safety team out of DeepMind

  • 📰 Bill Gates proposed protecting certain jobs from AI entirely

  • 🎓 Make Claude Code and Codex share the same project memory

😺 Nvidia is buying the place where the entire AI industry keeps its models

A few weeks ago, Hugging Face was breached by OpenAI's own rogue agents that escaped their sandbox (a locked-down practice environment) and hacked their way in. Now the company whose chips train those very agents wants to buy the place outright.

Here's what happened:

  • Nvidia has agreed to buy Hugging Face for $12.9 billion, according to The Information, in a deal first reported as "talks" by Business Insider just days earlier.

  • Hugging Face is often called the "GitHub of AI" (a reference to the site where software developers store and share code): it's the default place developers go to find, share, and deploy AI models and datasets.

  • Nvidia already backed Hugging Face at a $4.5 billion valuation back in 2023, alongside Google and Salesforce. Earlier this year, it offered $500 million for a stake that would've valued the company at $7 billion; Hugging Face turned it down.

  • Neither company has confirmed the deal publicly yet.

Our take: Nvidia already controls the chips that train and run most AI models. Buying Hugging Face hands it the software and community layer too, deciding where those models actually live. If your team's ever pulled an open-source model at work, it probably came through Hugging Face, whether you knew the name or not. There's irony here too: OpenAI's own agents hacked this same platform last month while cheating on a benchmark.

It also fits a pattern. Nvidia has poured $40 billion-plus into AI equity deals in 2026 alone, including a $30 billion OpenAI stake, deals critics call "circular financing" (Nvidia backing companies that buy Nvidia chips with the money). Huang calls that label "simply ridiculous." Buying Hugging Face outright is different: Nvidia owning infrastructure, not just funding a customer.

The open question: does Hugging Face's neutral, open-source reputation, the thing that made it valuable, survive being owned by the company with the most to gain from picking winners?

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🎓 AI Skill of the Day: Make Claude and Codex Share a Project Brain

Claude Code and Codex can share project instructions even though they look for different files. Codex reads AGENTS.md; Claude Code reads CLAUDE.md, and Anthropic says that file can import an existing AGENTS.md.

  1. Put shared project rules in AGENTS.md, including: read STATUS.md first and update it before stopping.

  2. Keep STATUS.md to the current goal, completed work, decisions, tests, blockers, and next action.

  3. Make CLAUDE.md simply import the shared file:

@AGENTS.md

Now either agent can open the same repo, read the handoff, and continue without a giant recap.

Tiny STATUS.md template:

# Goal
# Done
# Decisions
# Tests
# Blockers
# Next action

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📰 Around the Horn

Proof it's not just theory: developer Chetan built this Three.js ocean scene by handing the work between Claude and Codex, structure and taste from one, implementation and iteration from the other.

  1. Meta scrapped a planned second wave of AI-driven layoffs after its plan to rebuild the company around AI agents sparked employee revolt, a spike in buggy code, and a breach that let hackers hijack a former president's old Instagram account.

  2. Google moved its 90-person AI safety team out of DeepMind and into its lobbying-focused global affairs division, as it turns the once-independent lab into a regular product unit.

  3. Bill Gates proposed permanently protecting certain jobs, like childcare and jury duty, from automation, plus a new tax on AI to make replacing workers less profitable.

  4. SoftBank is in talks to buy a majority stake in 1X Technologies, the OpenAI-backed humanoid robot startup building home helper robots, in a deal that would value it at about $6 billion.

  5. Claude Cowork got a built-in browser, letting Claude open sites, click, type, and fill out forms directly in a side panel while you watch.

  6. Sam Altman told TIME OpenAI isn't at AGI yet, but expects an internal system by year's end that he'd personally call AGI, while OpenAI's chief research officer put the company at "80% of the way" there.

  1. *Outskill’s 3 Hours AI Tools Workshop teaches you 15 powerful AI tools and how to build your own AI Co-Worker that works 24/7. Save a seat.

  2. Fireflies turns meetings into searchable transcripts, summaries, and action items automatically; free plan, then $10/seat/mo billed annually.

  3. agent-manager runs every Claude Code, Codex, and Gemini CLI session from one terminal screen, spawning new agents with a single keypress—free to try.

  4. Vizard Agent turns a prompt into a finished video, edited from your own footage or generated from nothing at all—no pricing details.

  5. Xirp, built by Spotify, plugs your AI coding agent into your team's actual systems and decisions so it stops guessing—no pricing details.

  6. BetterClaw builds and deploys a working AI agent in about 60 seconds, no code required—free to try.

  7. Termux-Dev turns your phone into a coding machine, running a full AI coding agent inside Android's Termux app—free to try.

🧩 Thursday Trivia

You know the drill: One is AI, and one is real. Which is which?

A

B

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Trivia Answer: A is AI, B is real

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Eric Gerard Ruiz

Eric Gerard Ruiz, a licensed CPA in the Philippines, specializes in financial accounting and reporting (IFRS), managerial accounting, and cost accounting. He has tested and review accounting software like QuickBooks and Xero, along with other small business tools. Eric also creates free accounting resources, including manuals, spreadsheet trackers, and templates, to support small business owners.

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