Nvidia to Acquire Hugging Face for $12.9 Billion, As the AI Arms Race Enters the M&A Mode
Last night, besides earnings reports, there were two major deals that immediately sent shockwaves through the market.
Reports say Nvidia plans to acquire the AI open-source platform Hugging Face for $12.9 billion—yes, the model hosting platform that just released the $399 “Made in China” robot “mini duck,” and that everyone is using.
At the same time, SoftBank is looking to take a controlling stake in the humanoid robotics company 1X for $6 billion, placing a big bet on “physical AI” as the next trillion-dollar track.
Let’s do the math: Nvidia is banking on a 70% revenue growth outlook while also shelling out $12.9 billion to buy into the “AI middle layer”; SoftBank’s bet is that AI will walk out of the screens and into the physical world.
Huang Jen-hsun’s logic is crystal clear: I control compute power—now even model distribution and the developer ecosystem must be grasped and held.
Big players have moved from “competing on compute power” to “competing on ecosystems, competing on M&A.” This arms race has just fired its second shot.$NVDA
Last night, besides earnings reports, there were two major deals that immediately sent shockwaves through the market.
Reports say Nvidia plans to acquire the AI open-source platform Hugging Face for $12.9 billion—yes, the model hosting platform that just released the $399 “Made in China” robot “mini duck,” and that everyone is using.
At the same time, SoftBank is looking to take a controlling stake in the humanoid robotics company 1X for $6 billion, placing a big bet on “physical AI” as the next trillion-dollar track.
Let’s do the math: Nvidia is banking on a 70% revenue growth outlook while also shelling out $12.9 billion to buy into the “AI middle layer”; SoftBank’s bet is that AI will walk out of the screens and into the physical world.
Huang Jen-hsun’s logic is crystal clear: I control compute power—now even model distribution and the developer ecosystem must be grasped and held.
Big players have moved from “competing on compute power” to “competing on ecosystems, competing on M&A.” This arms race has just fired its second shot.$NVDA
