Veytics Intelligence
2026-09-28 · CNBC

OpenAI sparked Hugging Face bids with early investment offer ahead of Nvidia's $13 billion deal

Before Nvidia agreed to pay roughly $13 billion to buy open-source platform Hugging Face this month, OpenAI tried to invest $100 million into the startup, according to sources with knowledge of the matter. Deal discussions between OpenAI began after a high-profile hack of Hugging Face in July, when AI agents from the ChatGPT creator broke out of a controlled testing environment, went rogue, and accessed the open web, said the people, who asked not to be named because the talks were confidential. As part of a potential deal between the two companies, Hugging Face would have served as a distribution channel for OpenAI's custom chips, dubbed Jalapeño , which the company is making with Broadcom . The talks fell apart in the early stages, one source said.

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