These Hugging Face guys made out like BANDITS!!!! Good for them. My favorite part is they approached Jensen for the buyout. They knew, very smart and mature on the founders/board.
Maybe they approached, tried to work together but then got bought out? Very common.
I don’t think many realize how hard it is to raise for a no revenue company that isn’t buying out large GPU contracts and racking machines.<p>They have a winning product for sure… the worlds models have chosen a hugging face workflow, but honestly where would they be able to find the revenue required to justify another couple rounds at ever higher valuations.<p>To me, I think these folks see that the music is getting harder to hear and might stop entirely, might as well cash out. I do hope their employees were well taken care of, and 13b of NVDA is likely to be worth a lot more in the coming years.
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.
Discussed last week at: <a href="https://news.ycombinator.com/item?id=49458161">https://news.ycombinator.com/item?id=49458161</a>
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.
Huggingface, llama.cpp and all European frontier. Congrats to Huggingface Team, that amount is tempting but nowhere near your real evaluation. You were about to blow up and there is no AI bubble (just not enough infrastructure like energy and hardware to process current and exponential inevitable growing tokens). Huggingface is bringing the real value to AI community, all the rest is more like scalping IMHO. Nvidia is a great company but not opensource friendly by historical doings. Today is a sad day for the community. Put a timer 2 year from now and mark this words: Huggingface is the free foundation, get what you can today.
They approached Nvidia to start the conversation. I guess sometimes great companies are sold, not just bought.
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
why would they sue their client ?! what does that say to all their other clients ?
Why would they sue one of their most important customers?
Another investing W for Kevin Durant, who is likely producing better returns than most VCs while being a full-time athlete.<p><a href="https://finance.yahoo.com/news/kevin-durant-investment-portfolio-15-120019205.html?guccounter=1" rel="nofollow">https://finance.yahoo.com/news/kevin-durant-investment-portf...</a>
Life changing for engineers having joined a few year ago. Congrats
Dupe.
I don't really understand why the AI equivalent of Maven Central is worth 12.9 billion dollars but maybe I'm an idiot.
Network effect.<p>Same reason why Github (fancy file storage website) was worth $7B+
Its a s3 wrapper. Can be replaced by a wordpress with torrents too. But they built an ecosystem around it and some libs/content. i guess thats what nvidia value
[dead]
[dead]
[dead]
This is what anti-trust laws were for.
How do you anticipate NVIDIA using Hugging Face to abuse monopoly power?
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.<p>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.<p>It's not like you can't just post model weights anywhere. There's really no lock in that Hugging Face has.<p>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<p>Wasn't always the case and will probably only be as long as there is a self interest.<p>> 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.