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FT had a solid piece a few weeks back: "Why AI start-up Hugging Face turned down a $500mn Nvidia deal"

https://giftarticle.ft.com/giftarticle/actions/redeem/9b4eca...

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sounds very interesting, but even though it says giftarticle.ft, I got blocked by a paywall.
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https://archive.is/zSyUc

To summarize, they rejected Nvidia's offer because they didn't want one outsized investor who could sway decisions. And "the company was also able to turn down Nvidia due to its stable finances. Hugging Face operates a 'freemium' business model. Three per cent of customers, usually large corporations, pay for additional features such as more storage space and the ability to set up private repositories."

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Freemium seems to be working pretty well for them—what’s the alternative website, after all. They seem to command their niche.
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find the Bypass Paywalls Clean extension. Never worry about a paywall again
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Their business model is essentially the same as GitHub. Host lots of stuff for free and build a community around it, sell the upscaled/private version to businesses. They are already profitable.
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This is what Sourceforge did too, and they still had the DevShare adware thing didn't they?

GitHub is great -- huge fan. To some degree they "sold out" to Microsoft and things could have gone more south, but thankfully Microsoft has ruled them with a very kind hand, and overall I'm extremely happy with the way they've handled it.

I guess I always retain a bit of skepticism with such things, and the long-term viability and goodness of such things never feels totally sure.

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They have paid hosting - https://huggingface.co/enterprise and paid accounts. Also consulting services. Seems like a pretty good foundation to me.
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and a lot of traction on paid (private in particular) storage these days; sneak peek at new landing page: https://huggingface.co/storage
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>Will they ever "sell out"?

Oh no, never. Don't worry, the usual investors are very well known for fighting for user autonomy (AMD, Nvidia, Intel,IBM, Qualcomm)

They are all very pro consumers and all backers are certainly here for your enjoyment only

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These are all big hardware firms, which makes a lot of sense as a classic 'commoditize the complement' play. Not exactly pro-consumer, but not quite anti-consumer either!
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> AMD, Nvidia, Intel, IBM, Qualcomm

> but not quite anti-consumer either!

All of them are public companies, which means that their default state is anti-consumer and pro-shareholder. By law they are required to do whatever they can to maximize profits. History teaches that shareholders can demand whatever they want, with the respective companies following orders, since nobody ever really has to suffer consequences and any and all potential fines are already priced in, in advance, anyway.

Conversely, this is why Valve is such a great company. Valve is probably one of the only few actual pro-consumer companies out there.

Fun Fact! Rarely is it ever mentioned anywhere, but Valve is not a public company! Valve is a private company! That's why they can operate the way they do! If Valve was a public company, then greedy, crooked billionaire shareholders would have managed to get rid of Gabe a long time ago.

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> By law they are required to do whatever they can to maximize profits.

I know it's a nit-pick, but I hate that this always gets brought up when it's not actually true. Public corporations face pressure from investors to maximize returns, sure, but there is no law stating that they have to maximize profits at all costs. Public companies can (and often do) act against the interest of immediate profits for some other gain. The only real leverage that investors have is the board's ability to fire executives, but that assumes that they have the necessary votes to do so. As a counter-example, Mark Zuckerberg still controls the majority of voting power at Meta, so he can effectively do whatever he wants with the company without major consequence (assuming you don't consider stock price fluctuations "major").

But I say this not to take away from your broader point, which I agree with: the short-term profit-maximizing culture is indeed the default when it comes to publicly traded corporations. It just isn't something inherent in being publicly traded, and in the inverse, private companies often have the same kind of culture, so that's not a silver bullet either.

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Great points.

Valve is one of my top favorite companies right now. Love the work they're doing, and their products are amazing.

Can hardly wait for the Steam Frame.

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heliumtera is being sarcastic.
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I once tried hugging face because I wanted I worked through some tutorial. They wanted my credit card details during the registration as far as I remember. After a month they invoiced me some amount of money and I had no idea what it was. To be honest, I don't understand what exactly they do and what services I was paying for, but I cancelled my account and never touched it again. For me that was a totally intransparent process.
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Their pricing seems pretty transparent: https://huggingface.co/pricing
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