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Power Dynamics CEO @jenzhuscott explains why NVIDIA buying Hugging Face could be a brilliant vertical integration play: "This is a very smart acquisition if it goes through because right now, closed AI labs like Anthropic and OpenAI, they all started moving to hardware. DeepSeek probably would never use NVIDIA's chips, but they are moving to their own hardware as well. So this kind of vertical integration could potentially become a threat." "Right now, Hugging Face is basically GitHub for…
348197129@348197129Aug 27
Why Jensen is the GOAT: • Hugging Face is the GitHub for open models. NVIDIA already sells the GPUs they run on. • Owning the distribution layer (not just silicon) lets NVIDIA push CUDA / TensorRT / NIM / DGX Cloud + its own Nemotron as the path of least resistance. • Closed labs (OpenAI, Anthropic) are exploring custom chips. Open-source inference + fine-tuning still run overwhelmingly on NVIDIA. Controlling the hub where those models live defends that demand. • $13B is a high X on $150M ARR, but small relative to NVIDIA’s cash flow. The payoff is ecosystem control, not software revenue. Questions that remain: 1. platform neutrality (HF currently works w AMD/Intel too) 2. antitrust risk? 3. Keep the community. Trust is the actual asset here.
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