alt Hacker NewsI’m asking more to work out what is the basis of this valuation. Why would Nvidia spend $13B for what seems to be a services that gives things away for free.
Replies
Risk management.
Nvidia has a market cap of $5T USD today, and a decent chunk of that is due to LLM speculation.
Does Nvidia want their stock price to be at risk of being tanked by a download service being in the news? No, they want to make sure the party keeps going and is under their direct supervision, and part of that is making sure Hugging Face isn't bought by a competitor or runs out of money.
> Why would Nvidia spend $13B for what seems to be a services that gives things away for free.
To stop that! Literally. To stop those services being free.
This is like saying GitHub or Google just gives away everything for free
They make it easy to run models. The models have to run on hardware somewhere.
Talking about profit is so passé in the new economic paradigm. The rules have changed— it’s about how much a company is worth. Get with the times.
–Some guys in every bubble I’ve witnessed.