- NVIDIA CEO Jensen Huang called AI investments a “once in a generation opportunity” and regretted not investing more and sooner.
- Nvidia has reportedly agreed to acquire open-source AI platform Hugging Face for $12.9 billion, strengthening its position against closed AI platforms.
- The deal could help Nvidia deploy AI computing capacity through its cloud business while providing a backup plan for infrastructure commitments.
Nvidia shares rallied nearly 6% in early trading on Thursday after its second-quarter earnings beat estimates, while CEO Jensen Huang’s AI investment comments and a reported $12.9 billion acquisition of Hugging Face underscored the company’s strategy.
Huang said during the earnings call: “Investing in these [Anthropic, OpenAI] companies are once in a generation opportunity.” He added that his only regret was not investing more and sooner.
According to reports from The Information, Nvidia agreed to acquire Hugging Face, a platform Hosting open-source AI models and datasets, for $12.9 billion.
The deal strengthens Nvidia’s position against closed AI platforms from OpenAI and Anthropic. Nvidia previously invested in Hugging Face’s $235 million funding round in 2023 at a $4.5 billion valuation.
Consequently, the acquisition could help Nvidia deploy AI computing capacity through its cloud business. The company disclosed $99 billion in equity investments and $25 billion in additional commitments during its earnings report.
The $12.9 billion price represents roughly 86 times Hugging Face’s annualized revenue of $150 million. Meanwhile, Chinese AI developers like Z.ai, Moonshot AI, and DeepSeek are releasing advanced models that increase competition with OpenAI and Anthropic.
Chinese company Z.ai released a new model Wednesday that it claims runs entirely on 100,000 China-made chips. Moonshot AI is reportedly in early talks with Microsoft, Amazon, and Alphabet’s Google over revenue-sharing agreements for its Kimi K3 model.
The Trump administration is also reportedly considering new tariff plans on the chip industry.
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