Hugging Face acquisition explained “A man making $120BN a year selling compute decides to buy a company that helps make compute more cost-effective so he can sell more compute. If end users have $1TN to spend on tokens, Nvidia would prefer that money flow through open-source people at 30% gross margins, rather than 70% gross margins at OpenAI or Anthropic. Open source is good for compute salespeople. If you are selling GPUs, you want everyone else’s margin to be lower so yours can be…