Nvidia wraps itself in $12.9 bln of insurance
NVDA•A pricey bet on uncertain AI economics
Of course, who knows where the AI market will go in months, let alone years. So there’s a certain unreality about what possible insurance might be worth. Perhaps that’s best seen in the $12,930,300,000 price tag. Sure, a leading platform, especially one in the headlines after rogue OpenAI agents attacked it, has merit in tech. But the Unicode for the hugging face emoji, converted to decimal, also yields the number 129,303. The deal might make strategic sense, but it’s a warning bell of hubris if the value of money in AI seems increasingly arbitrary.
CONTEXT NEWS
Nvidia said on September 3 that it had agreed to buy Hugging Face for $12.9 billion. The target is an open platform where AI developers share tools, models and data sets. Nvidia said Hugging Face will remain an open platform and that Nvidia compute will not be required to build on or deploy through Hugging Face.
Under the deal, Nvidia will pay $11.9 billion to Hugging Face investors, and offer up to $1 billion in equity-based retention to employees who join Nvidia.
