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Hugging Face is early in the Silicon Valley enshittification cycle - currently burning VC money being incredibly good to it's users. Next would be shifting that value to its business customers. Then clawing back and squeezing as much value as possible from those. Then collapse. Although, is it technically a platform / marketplace? Anyway for now, enjoy the free beer from the VCs.
Genuine question … What business are you in when selling AI/ML? I’m far from being knowledgeable in this space, but it seems like AI/ML “is a feature, not a product”. And if that’s the case, what business are you in when a company sells AI/ML? Are you in the business of licensing the model you created? Charging for the output? Hosting infrastructure? What exactly are you in the business to sell? To use an analogy, if…
If they can make it easier and worthwhile to use their product and create business value, then they will sell a lot of picks and shovels.
Earlier quoted context omitted.
To add further, i do not know what is end goal of hugging face. 1. They have inference API but all cloud provider can implement those in next year. 2. They offer subscription but market-size of subscription is questionable. 3. I hope this new set of funding don't bring problem to them because making money with open source is hard and at this scale of funding it might be even harder. It see what happens in next set of…
GitHub for ML models? If they can anchor themselves to the open-source developer network, their acquisition value is in a tech giant being able to cross-sell to that community.
I'm not going to host my code on multiple platforms, pretty easy to make a model available for download with S3
Hugging Face is early in the Silicon Valley enshittification cycle - currently burning VC money being incredibly good to it's users. Next would be shifting that value to its business customers. Then clawing back and squeezing as much value as possible from those. Then collapse. Although, is it technically a platform / marketplace? Anyway for now, enjoy the free beer from the VCs.
I think it's important for people to diversify away from them and not build anything that uniquely depends on them. It's not good to have chokepoints like this.
From Nvidias point of view, this might be an investment in their own business via network effects rather than a straight up investment in Hugging Face. I hope so, because when the VC money goes, the billing will go through the roof.