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Nvidia's $12.9B Hugging Face deal shows why IPOs are now optional

Hugging Face spent years doing everything a company does before going public. It hit $150 million in annualized revenue, attracted 18 million developers to its platform, and netted almost $395 million from backers like Amazon, Intel, Sequoia and Coatue. Then Nvidia made it an offer it couldn’t refuse. On Thursday, the chipmaker confirmed a deal to acquire the AI model distribution platform for $12.9 billion. The IPO has always been the destination for venture-backed companies. Before the late 20

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Stocks· September 06, 2026 at 10:03 AM
Authored by·Editorially reviewed
Onur Erkan Yıldız
Founder, Financial Engineer · CMB-licensed
NeutralMedium impact

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Hugging Face spent years doing everything a company does before going public. It hit $150 million in annualized revenue, attracted 18 million developers to its platform, and netted almost $395 million from backers like Amazon, Intel, Sequoia and Coatue. Then Nvidia made it an offer it couldn’t refuse. On Thursday, the chipmaker confirmed a deal to acquire the AI model distribution platform for $12.9 billion. The IPO has always been the destination for venture-backed companies. Before the late 20

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