The $12.9 Billion Question: Why Did NVIDIA Buy Hugging Face?

NVIDIA is reportedly paying $12.9 billion for Hugging Face, a company that earns about $150 million a year. That's roughly 86 times sales. The day before the story broke, Jensen Huang told an analyst that nearly all open models already run on NVIDIA. So he already gets paid every time somebody downloads a free model. He's reportedly buying the download page anyway. This video works out what that $12.9 billion actually buys, using a deal NVIDIA closed nine months ago that most people shrugged off. ⚠️ Deal status as of filming: reported, not confirmed. Business Insider said the talks could still fall apart. The Information said the deal was already agreed, sourced to one anonymous person. Neither NVIDIA nor Hugging Face has confirmed anything. I've flagged every unconfirmed number in the video. 🔔 Subscribe for breakdowns on tech trends and how they impact your investment portfolio: https://www.youtube.com/c/KohKim?sub_... 📩 Sign up for my newsletter — weekly breakdowns and fundamental analysis on the structural shifts shaping markets: https://newsletter.resetandinvest.com... 📱 Follow me on Instagram:   / koh_kim   --- TIMESTAMPS 00:00 A $12.9B price that makes no sense 01:43 What Hugging Face actually is 02:56 Why the revenue can't justify the price 03:53 What $12.9 billion actually buys 05:36 Three moves in nine months 07:49 Why NVIDIA needs this now 09:11 The one thing that could stop it 11:00 The GitHub clock, and 4 signals to watch 13:10 Where this leaves your portfolio ⚠️ DISCLAIMER: Nothing in this video is financial advice. I am not a financial advisor or licensed investment professional. This content is for informational and educational purposes only and reflects my personal research and perspective. It is not a recommendation to buy or sell any security. Always do your own research and consult a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results. Investing involves risk, including the possible loss of principal. I may hold stocks mentioned in this video.