Unfortunately not all deals go through. Like Wiz + Google, or Figma + Adobe. A lot can go wrong between “in talks to acquire” and “acquired.” The official announcement is less surprising but still newsworthy.
Happy for the hugging face team. Many great folks there who’ve waited patiently for HF to find a business model, and finally they get something even better.
I was also theorizing that part of their acquisition was to get more intel on that, though I feel like in practice that whole thing right now is just theatre for inflating the cybersec market
Hugging Face has no path to substantial profitability and the investors and employees want liquidity. Nvidia doesn't want this to look like a bubble pop (as they have lots of GPU data center build outs to complete), they've got plenty of cash on hand, and they're an extremely good natural fit for the company.
Nvidia is seeing its top frontier model customers develop their own chips to sidestep Nvidia and as a counter, Nvidia is investing in the open source ecosystem. Open source means more competition and more demand for GPUs rather than single all-powerful labs that can will their own chips into existence and begin to push Nvidia aside. Plus Nvidia is betting big on local inference for robotics. All of this is bolstered by open source.
It's not like you can't just post model weights anywhere. There's really no lock in that Hugging Face has.
If you're looking for real monopoly issues that distort market economics and make it hard to compete without paying taxes to your competitor, consider Google's ownership of 92% of URL bars or the Google / Apple duopoly of smart phone software distribution.
> Nvidia is investing in the open source ecosystem
Wasn't always the case and will probably only be as long as there is a self interest.
> Linus Torvalds himself noted that the AI boom changed NVIDIA, turning them into a much better contributor to the Linux kernel Linus Torvalds: AI CHANGED NVIDIA.
Not sure why this is news again this week when it was already announced previously. NYTimes was also reporting this like it was news today.
Because it's a new blog post with new information
Wasn’t official
In related news, Voyager has left the solar system!
Sure, but that’s the case for basically all acquisitions.
Unfortunately not all deals go through. Like Wiz + Google, or Figma + Adobe. A lot can go wrong between “in talks to acquire” and “acquired.” The official announcement is less surprising but still newsworthy.
Discussed last week at: https://news.ycombinator.com/item?id=49458161
Happy for the hugging face team. Many great folks there who’ve waited patiently for HF to find a business model, and finally they get something even better.
Hugging Face has an identity problem. It needs a gestalt therapist to take it back to where it was meant to grow up.
Theoretically, can Nvidia direct Hugging Face to sue OpenAI now for the hack? Surely they could find some interesting stuff in discovery :)
I was also theorizing that part of their acquisition was to get more intel on that, though I feel like in practice that whole thing right now is just theatre for inflating the cybersec market
the last thing nvidia would want is to make ai look more legally risky
to say nothing of their massive investments direct and indirect in openai
Yep. In fact, eliminating that risk on OpenAI's behalf was probably a small factor in the acquisition
why would they sue their client ?! what does that say to all their other clients ?
Clients sue other business partners all the time, that doesn't mean they stop working together. There's lots of examples of this.
I suspect there are very few examples of it when they are as entangled and invested in them as Nvidia is in OpenAI.
Why would they sue one of their most important customers?
Not to mention that they own a 10% stake in OpenAI
They approached Nvidia to start the conversation. I guess sometimes great companies are sold, not just bought.
Another investing W for Kevin Durant, who is likely producing better returns than most VCs while being a full-time athlete.
https://finance.yahoo.com/news/kevin-durant-investment-portf...
Life changing for engineers having joined a few year ago. Congrats
This is what anti-trust laws were for.
Hugging Face has no path to substantial profitability and the investors and employees want liquidity. Nvidia doesn't want this to look like a bubble pop (as they have lots of GPU data center build outs to complete), they've got plenty of cash on hand, and they're an extremely good natural fit for the company.
Nvidia is seeing its top frontier model customers develop their own chips to sidestep Nvidia and as a counter, Nvidia is investing in the open source ecosystem. Open source means more competition and more demand for GPUs rather than single all-powerful labs that can will their own chips into existence and begin to push Nvidia aside. Plus Nvidia is betting big on local inference for robotics. All of this is bolstered by open source.
It's not like you can't just post model weights anywhere. There's really no lock in that Hugging Face has.
If you're looking for real monopoly issues that distort market economics and make it hard to compete without paying taxes to your competitor, consider Google's ownership of 92% of URL bars or the Google / Apple duopoly of smart phone software distribution.
> Nvidia is investing in the open source ecosystem
Wasn't always the case and will probably only be as long as there is a self interest.
> Linus Torvalds himself noted that the AI boom changed NVIDIA, turning them into a much better contributor to the Linux kernel Linus Torvalds: AI CHANGED NVIDIA.