New Delhi, Aug. 27 -- Semiconductor giant Nvidia has agreed to acquire Hugging Face, a repository of open-source AI models, in a deal valued at $12.9 billion, The Information reported on Wednesday, citing a person familiar with the matter.

The reported price tag is strikingly higher than Hugging Face's annualised revenue of $150 million, which the news publication reported earlier this week, highlighting the steep valuation Nvidia would be placing on the AI startup.

A deal of this size would rank among Nvidia's largest acquisitions to date, underscoring how the Jensen Huang-led chipmaker remains bullish on the growth of artificial intelligence.

It would also give Nvidia control of Hugging Face, which hosts open-source large language mo...