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Nvidia has been in talks to acquire Hugging Face for more than $13 billion (www.businessinsider.com)
submitted 3 days ago* by to c/technology@lemmy.world
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[–] 26 points 3 days ago (3 children)

Nvidia is the only dog in this race that's actually turning profits hand-over-fist

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  • [–] 24 points 3 days ago (1 child)

    Only if the line keeps going up. Ai companies have been “selling” chunks of themselves to NVIDIA for “cash” then these companies turn around and buy hardware from NVIDIA. When the crash eventually comes, NVIDIA will have some percentage of zero (or close enough to count) value company. Basically acting like a bank, just cutting the banks out of the process. NVIDIA shows revenue and the AI company churns their super-inflated value to be even more inflation.

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  • [–] 10 points 3 days ago* (last edited 11 hours ago) (2 children)

    nah, they're basically the best shovel sellers around. practically all their deals take payment up front for the hardware (+lease obligation) on top of some form of constant monetization for the compute used a/o various types of financing schemes (that involve getting outside parties, generally private credit, to foot the bill).

    jensen knows this game very well and is playing everyone else superbly.

    it's obviously a bubble and they will correct along with everything else eventually, but compared to the rest NVDA will likely come out far far ahead of everyone else because they bring in actual revenue.

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  • [–] 1 point 2 days ago

    OK, sure, theyre selling shovels but theyre lending a bajillion dollars in shovels for equity in unprofitable companies and when the bubble bursts they'll have no cash and pieces of paper in defunct companies. Unable to meet their operating costs they'll die or be pieced off. You can't run a company off of IOUs.

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  • [–] 1 point 2 days ago

    And their local AI push (Nemotron, DGI Spark, RTX Spark, Huggingface, ...) is all done to diversify before the crash.

    Local AI is constantly getting better, both on server-grade hardware and on hardware regular users can actually own.

    In fact, for Nvidia it's better to have a solid standing with consumer-grade local AI. If Anthropic, Google and OpenAI manage to DIY their own AI chips, then Nvidia will lose a large portion of their revenue within a day.

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  • [–] 2 points 3 days ago

    Most of that money is their own money though, just being paid back to them by the companies they "invested" in. This makes the line go up and adds to Jensen Huangs personal fortune, but it is not actually a profit for the company.

    Their main manufacturing business is now making components for datacenters, and those are also starting to lose ground.

    Jensen Huang is personally adding to his fortune though, no doubt about that. But so are all the other tech oligarchs, even if their companies are huge bubbles on the verge of explosion.

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