Somewhere, there’s a slide deck that shows future revenue going hockey stick.
replySame reason why GitHub was acquired for $7.5B at $250 million ARR which is 30x revenues:
replyVCs could not see any other reason to raise more money and Huggingface was not growing as fast as they thought to justify the valuation or the next fundraise.
So they might as well get Nvidia to save them from the VCs pressurizing them.
That doesn't make much sense to me. Companies don't just buy companies for absurd multiples out of the niceness of their heart.
replyIn the case of GitHub, it was likely for data reasons + wanting to own where developers do work (VScode + Github).
In the case of HuggingFace, honestly not sure as I'm not familiar enough with their business. But I can assure you that Nvidia didn't buy them for 13 billion cause HuggingFace were desperate. When you're desperate, you sell for less not more.