They’re buying a brand, some employees, and some momentum — not any of their software. HF probably does have propriety goodies to make it all run efficiently, but certainly not a billion dollars worth, much less 13!
We are so used to these numbers being thrown around in the AI era that something one needs a reminder that this is 13 billion, not million. Insane exit by HF.
Was looking for this comment, the tech world has gotten completely insane with ”valuations”. I would love to hear why it was 13 and not 5. It would still be completely insane at 5 billion, but someone though they should add another 8…
Opportunity cost for Nvidia to prevent HF from going public or being sold to someone else. It's an insight into Nvidia's market prediction and what HF told them they'd do if left alone.
No company is going to be acquired for their software alone with multi-billion valuations ever again. It should be clear by now that code alone is not where the value is anymore, if it ever was.
