Comment by chii

4 hours ago

> as a force to have open weight models run better on Nvidia against the rest.

this is the crux - if nvidia makes it so that open weights end up running better on nvidia hardware than competitor's, then it's going to prevent hardware innovation and competitiveness in the entire sector.

It's like as tho General Motors buys out oil refinery to make gas for all, but the gas somehow runs smoother in GM cars.

3 comments

chii

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robocat  3 hours ago

If you don't own the customer relationship, you don't own the profit. See App store, FB.

NVidia is delivering commodity hardware to the hyperscalers, and would eventually get commodity margins (when hyperscalers make their models work on their own hardware).

Amazing article on relevant economics of squeezing vendors - actually about antitrust ad-models but:

  The answer is that [advertising based] companies are an ideal test case for an increasingly common business meta-model, where companies try to create a consumer surplus at one end in order to maximize their negotiating leverage for capturing the producer surplus everywhere else in their supply chain.

https://www.thediff.co/archive/ad-supported-platforms-are-a-...

Perhaps not relevant to huggingface, sorry.

coderenegade  4 hours ago

It's a clever move if that's what they're doing. They're restricted in China, and are likely to face stiff competition from Chinese chipmakers in the coming years. Acquiring the largest repository of trainable models and ensuring they run better on Nvidia hardware is probably one of the few moves they have for keeping ahead of the competition. I mean, it would be terrible for the consumer, but it does make me think that NVDA is a decent investment.

  • high_na_euv  1 hour ago

    Why would they have to acquire hf in order to optimize their stack for those models?

    Couldnt they just take those models anyway?