Stocks
Nvidia Lands Hugging Face Deal for $13 Billion
Nvidia announced it will acquire Hugging Face for $12.93 billion in its biggest move yet to assert dominance in the AI market.
The deal is a validation of open-source AI and comes just a month after Hugging Face was hacked by OpenAI models, highlighting security concerns in the industry.
Nvidia's acquisition aims to broaden its customer base, currently relying on 70% of revenue from seven major companies including Amazon, Google, Microsoft, Meta, SpaceX, Anthropic, and OpenAI.
Jed Ellerbroek, portfolio manager at Argent Capital Management, notes that Nvidia can reduce model layer and cloud computing layer pricing by injecting more competition to widen its customer base.