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. 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.
Discussed last week at: https://news.ycombinator.com/item?id=49458161
Theoretically, can Nvidia direct Hugging Face to sue OpenAI now for the hack? Surely they could find some interesting stuff in discovery :)
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. 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.