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!

▲

r0b05 a day ago | parent | next [-]

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.

▲

hirako2000 a day ago | parent | next [-]

80x its yearly revenue. Clearly they aren't buying HF for margins.

In fact, has HF ever wished to make money? They probably pay AWS more infra cost than they earn. The exit was planned all along.

▲

techpression a day ago | parent | prev [-]

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…

	▲	speed_spread a day ago \| parent [-]
		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.

▲

catwell a day ago | parent | prev | next [-]

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.

▲

wilburx3 a day ago | parent | prev [-]

Yeah, the price is weird as fuck.