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- Hacker News
- What is the business model of hugging face? My understanding was they were basically just a file hosting platform.by Gigachad
- Soo, what are they buying exactly?
Can I setup a forgejo instance, upload a bunch of open source models to it and get bought out for $13bln?
I fail to see the point of this. Their inference hosting is a joke (I don't think I ever had a working response from a "try this model" form).
Their brand alone surely is not worth this much.
So what are they paying for?
I worry the answer is, for control over who is allowed to distribute the weights. Nothing else.
by Roark66 - I guess this unfortunately means HuggingFace won't be "the first company to go public with an emoji instead of the three-letter ticker" as the cofounders originally intended:
"When we started the company, a running joke with my co-founders was that we wanted to be the first company to go public with an emoji instead of the three-letter ticker when you go in the NASDAQ." -- Clem Delangue (https://unsupervisedlearning.substack.com/p/the-future-of-open-vs-closed-source)by mrshu - The more interesting is HF turned down a $500M Nvidia investment late last year at a $7B valuation, after passing on a $235M round in 2023 at $4.5B — going from "we don't want a dominant investor" to a $13B full acquisition in under a year is quite the reversal.by Conol_ai
- Obviously, NVIDIA is trying to own the AI development chain.
Owning HF -- the discovery and distribution channel -- is one thing, but I think the biggest threat vector is the privileged access to HF platform data, that includes HW survey info and model download pattern. This can be a borderline anti-trust case.
by esjeon - Remember just 6 months ago that "Ggml.ai joins Hugging Face to ensure the long-term progress of Local AI" (https://news.ycombinator.com/item?id=47088037)
(Ggml.ai is llama.cpp.)
Curious if the “I consider HuggingFace more "Open AI" than OpenAI” sentiment in that top comment will still apply with NVIDIA as the boss now...
by kpw94 - Well congrats to Clem and the team. I remember when huggingface was doing things like coreference resolution models on spacy.
I hope nvidia does right by the community.
Edit to add: $13B should cover the S3 egress fees for a couple months :D
by binarymax - HF has been a close part of my ML/AI career, coinciding exactly when I moved into this space 10 years ago. There are lot of nuances here (if the deal goes through). Some people say it's a loss for EU sovereign AI but HF is technically an American corporation. On the positive note, the founders (Julien, Thomas and Clem - all French) stem to make significant amount of money, which they are likely to pour into a new frontier AI lab in Europe. So potentially it's a big win. For Nvidia this is a great strategic play as it potentially gains control of the "AI app store" and can influence the direction of Transformers, Diffusers, PEFT and various other HF libs inits favour. At the same time Nvidia has been (somewhat paradoxically) a dominant force in actual "open source" AI and has contributed significantly via Nemotron and various optimisers close to the metal. This would likely accelerate further. Nvidia has everything to gain from having a massive open model ecosystem, instead of a consolidated market consisting of 2-3 players. Will that have impact on MLX and other contributions? We'll see!by armcat