NVIDIA announced that it will acquire Hugging Face, which provides a platform for developing and sharing AI models, for approximately ¥2 trillion. Hugging Face's enterprise value has nearly tripled in 3 years.
US chipmaker NVIDIA announced the acquisition of Hugging Face for approximately ¥2 trillion. This is expected to become the largest M&A transaction in NVIDIA's history. Hugging Face's value has expanded significantly over the past several years.
The backdrop includes changes in the business environment surrounding NVIDIA, such as major cloud providers developing their own semiconductors. These developments appear to be affecting the competitive landscape surrounding the development and adoption of AI.
The acquisition is reportedly aimed at strengthening the infrastructure that supports the development and sharing of AI models, and NVIDIA appears to be seeking to stabilize demand for GPUs and expand the AI ecosystem. By examining the background and related strategy, this article seeks to capture changes in the standing of a company known as the "strongest company."