Why Nvidia is Paying $12.9B for Hugging Face
Nvidia is reportedly acquiring Hugging Face for $12.9 billion, a move aimed at bolstering its open-source AI strategy. Despite the high valuation, approximately 80 times revenue based on Hugging Face's $150 million in current revenue, Nvidia views the deal as strategically crucial. Hugging Face's platform hosts a wide range of open-source models, which can run on Nvidia's chips, thereby preserving the company's dominance in the AI hardware market. This acquisition follows a series of recent investments by Nvidia in AI-related companies, including partnerships for data centers and investments in AI startups like Perplexity.
The acquisition signifies Nvidia's commitment to dominating the AI ecosystem by controlling key open-source platforms, potentially influencing the future development and deployment of AI technologies.
SoftBank is in talks to acquire a majority stake in humanoid robot company 1X, a deal potentially valued at $6 billion, which represents a down round for the startup despite its prototypes and pre-orders.
