NVDA's Hugging Face acquisition is critical for expanding beyond chips to become the top AI destination.

Nvidia announced this morning that it is acquiring "Hugging Face" for more than $12.9 billion. CEO Jensen Huang posted a blog post announcing the deal, saying: "Together we will expand the Haggingface platform, strengthen its infrastructure, and broaden access to AI for developers and enterprises worldwide."

It is Nvidia's second-largest acquisition in history after paying around $20 billion for assets from chipmaker Grok last year. This is important for Nvidia and expands its reach beyond chips and computing systems.

We are seeing little change at Nvidia right now as a reaction, but the stock rose yesterday after a Bloomberg report that this is coming.

Yes, there is some kind of recovery. Remember that after the earnings, the stock exploded and then we started to decline in the next few sessions, but the stock jumped yesterday because of this news.

Now, the initial estimates were approaching the 14 billion that were released yesterday morning. So, there's a small discount here.

But this relates to the discussion we had yesterday on the " Fast Money" program. As far as Nvidia is concerned, Diane, they are trying to diversify their revenue stream at this stage.

Graphics processing units (GPUs) are pioneers in this field. But when you look at what they do on the central processing unit ( CPU) side, right? Vera Rubin, they started expanding in this area and started getting good bookings, which is putting pressure on AMD and Intel right now.

Now, they have started to move into other parts of the AI ​​infrastructure in the technology industry to compete a little with OpenAI on that side, and with Anthropic as well. So, they are expanding their presence.

Jensen Huang has stated this repeatedly. They want to be the number one destination for everything related to artificial intelligence , not just a chip producer. Therefore, this is of critical importance for the future of Jensen Huang and Nvidia.