Think of Nvidia's $13 billion deal for Hugging Face as a form of ‘health insurance'

Think of Nvidia’s $13 billion deal for Hugging Face as a form of ‘health insurance’ As long as open-source AI models dominate, Nvidia’s custom chip competitors won’t be able to erode its share of the semiconductor market, an analyst says.

Nvidia has a history of knowing where to invest to maintain its chip dominance, and one analyst sees its acquisition of Hugging Face as the latest example. Consider the chip maker’s NVDA $13 billion purchase of the open-source artificial-intelligence repository as “health insurance” for a company facing increasing competition from custom chips, said Richard Windsor, founder of independent research firm Radio Free Mobile.