Nvidia Buys Hugging Face for $12.93 Billion

Nvidia has agreed to acquire Hugging Face, one of the most widely used platforms for building and sharing open-source AI models, in a deal worth approximately $12.93 billion.

The acquisition ranks among the largest in Nvidia's history and marks a deeper move by the company into AI software and tools, beyond its core business of selling chips. The deal underscores how AI infrastructure competition is increasingly fought across both hardware and the software layers where developers actually build applications.

Hugging Face is used by developers worldwide to access AI models, datasets, and tools, and the platform is expected to remain open after the deal closes. That openness has been central to Hugging Face's adoption, and any perception of change would be the key thing to watch as the acquisition moves toward closing and regulatory review.

The purchase comes as some of Nvidia's largest customers develop their own custom chips. Acquiring Hugging Face gives Nvidia a stronger role in how developers build AI, regardless of which hardware they use.

Snowflake Surges More Than 20% on AI Demand

Snowflake shares jumped more than 20% after the cloud data company reported stronger-than-expected results and raised its revenue outlook.

Second-quarter product revenue grew 37% to $1.49 billion, while total revenue for the quarter came in at $1.55 billion.

The company now expects approximately $6.07 billion in product revenue for fiscal 2027, up from its earlier forecast of $5.84 billion.

CEO Sridhar Ramaswamy said AI products accounted for roughly half of the company's recent growth acceleration. That positions Snowflake differently from software companies that view AI as a threat. The results add to a growing split in enterprise software, where firms that monetize AI workloads on top of their existing data platforms are reporting stronger demand than those still digesting AI's disruption of their traditional products.

Broadcom Eyes $230 Billion AI Chip Business by 2028

Broadcom is forecasting substantial growth in its AI chip business. The company expects AI chip revenue to reach around $115 billion in fiscal 2027 and potentially double to $230 billion in 2028.

Third-quarter AI chip sales already reached $16.7 billion, with overall quarterly revenue of $29.59 billion.

Broadcom has become a key player in custom AI chip development for large tech companies, offering them an alternative to relying solely on Nvidia hardware. That custom silicon business places Broadcom and Nvidia's newly announced software ambitions on intersecting paths, as both compete for the AI budgets of the same handful of hyperscale customers.

Despite the strong numbers, Broadcom shares fell after its near-term guidance came in slightly below Wall Street expectations.

HPE Revenue Jumps 33.7% as AI Server Demand Grows

Hewlett Packard Enterprise reported quarterly revenue of $12.21 billion, a 33.7% increase year over year, beating analyst forecasts. Adjusted earnings came in at $1.11 per share, also above expectations.

The company raised its fiscal 2026 revenue growth forecast to between 34% and 37% and expects further growth of 13% to 17% in fiscal 2027.

HPE's CFO said demand for AI servers and networking equipment is currently outpacing supply, with memory and components creating bottlenecks in fulfilling orders. Supply constraints like these have become a recurring theme across AI hardware vendors this cycle, and how quickly memory and component shortages ease will shape whether forecast growth translates into shipped revenue.

HPE also expanded its partnership with Oracle to supply networking equipment for Oracle's AI data center buildout.

Oil Hits Six-Week High as Iran Tensions Rise

Brent crude rose about 1.7% to $97.29 a barrel, while West Texas Intermediate climbed around 2.2% to $93.04, pushing oil to six-week highs.

The moves followed renewed U.S. strikes against Iran and growing concerns around the Strait of Hormuz, a key route for global oil shipments.

Higher oil prices could push up fuel and transportation costs, potentially adding to inflation and factoring into upcoming Federal Reserve interest rate decisions.

Source: CoinCentral