Nvidia · China · OpenAI · Jensen Huang · CNBC Technology
Why Nvidia's 'defensive move' to acquire Hugging Face is about much more than chips
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This report is from this week's The Tech Download newsletter.
Key facts
- The price tag was a cool $12.9 billion, making Hugging Face Nvidia's second-biggest purchase, after it paid $20 billion for chipmaker Groq's assets
- That nearly $13 billion valuation was what it took to fend off other bidders, Nvidia CEO Jensen Huang told CNBC on Thursday
- Meta's $18 billion social media settlement lifts a legal overhang that some analysts said could clear the way for a wave of new AI product launches
- Palantir CEO Alex Karp is backing a new defence tech startup founded by former Ukrainian Defense Minister Mykhailo Fedorov
Summary
Yesterday, Nvidia confirmed what they all already knew. The company is planning to acquire Hugging Face, a New York-based startup which has built a repository for open source AI models and recently shot to global recognition after it came under a cyberattack by rogue OpenAI models. The price tag was a cool $12.9 billion, making Hugging Face Nvidia's second-biggest purchase, after it paid $20 billion for chipmaker Groq's assets. That nearly $13 billion valuation was what it took to fend off other bidders, Nvidia CEO Jensen Huang told CNBC on Thursday. So why did the world's most valuable company splash the cash for Hugging Face?