The Simple Reason I'm Not Worried About Nvidia's Hugging Face Acquisition
The Hugging Face deal looks like a win for Nvidia, but it might not be for the reason that you think.
Overview
Nvidia (NASDAQ:NVDA) has delivered plenty of organic growth over its history, but acquisitions have also played a major role in its expansion from a GPU designer to a comprehensive AI platform, or factory, as CEO Jensen Huang calls it.
For example, it acquired the data center networking specialist Mellanox for $6.9 billion in 2019, and it now anchors a business that generates more than $31 billion in revenue annually.
Details
The Hugging Face acquisition, which it announced last week, will be its biggest ever at a purchase price of $12.9 billion. Nvidia did spend $20 billion in a deal with Groq, but that was a non-exclusive technology licensing and talent agreement, rather than an outright acquisition.
Source
Originally published at www.fool.com.