THIS WEEK IN AI: Nvidia Acquires HuggingFace, Leopold vs SEC, New Waymo Chip

**Ejaaz** (0:00)
The very same company that just got hacked by a rogue open AI model just got acquired for $13 billion by none other than Nvidia. Jensen Huang believes so strongly in owning open source models in America, and he's made his biggest purchase yet. But that's not without cause. Nvidia just reported their earnings, and they had a record core. They earned almost $100 billion in just three months, and the company is growing 100% year over year. This is unprecedented for the most valuable company in the world, worth over $5 trillion, and every single bank has raised their price targets for the Nvidia stock. But that's not all in this week's Roundup. We had a new secret model that revealed to be GPU's new GLM 5.3 Flash, which competes at the level of Fable and OpenAI GPT 5.6, but at a fraction of the cost. We've got Leopold updates, unfortunately, of the bad kind, where he is being probed by the SEC, where they've subpoenaed a bunch of banks for accusations of insider trading.
We finally have an update on robots from the worlds of Waymo, Autonomous Driving and Tesla. All that and more on this week's Roundup.

**Josh** (1:06)
To start with the Nvidia quarterly revenue, I want to give you a sense of how outrageous this company is. Nvidia's quarterly revenue now exceeds the annual revenue of roughly 480 of the S&P 500 That is a crazy statistic how big it is. Nvidia is printing about just over a billion dollars in cash every single day that it operates. The day you're listening to this, Nvidia is printing a billion dollars of revenue, and that number is going to go up. They're projecting huge amounts of growth over the next quarter, and they're guiding now for 70 percent year-over-year growth in 2020 relative to the expectations, which were 44 percent.
This earnings report was about as good as you can guess, and Wall Street is rewarding them now. I mean, the stock is up. It was down after trading, but it is now up 7 percent early market. We're looking on screen now at all of the banks that have changed their price target after reading this earnings report. Pretty much every single one of them has raised it significantly higher, with the highest being $420 per share. And to grow that much as a $5 trillion company is a meaningful amount of revenue. And I think this is very high signal that the market is still in a really strong spot. Nvidia is basically saying like, hey, guys, we know we have a lot of competition. We know everyone's trying to build their own thing. In fact, Jensen was on CNBC yesterday, and he was asked about OpenAI's Jalapeno chip. I don't know if you saw this, it was very cool. Because Jalapeno is a really great model, and they are really great chip. And they came out and said, hey, this is actually more efficient than the Nvidia chips. And Jensen was like, dude, we're the kings here. We've been doing this for 33 years. You've been doing this for three months.
We'll talk to you when you've actually produced a chip, when you've put it into data centers, and when you've scaled this thing.
He does not seem concerned. The market really like that. And now it seems like, I mean, Nvidia is really off to the races, and there's no end in sight. Everyone wants the chips. They are sold out for as much as they can make them. They're basically operating fully at capacity, and they have a very clear path to dominating more and more of the industry. They're growing bigger by the day. They now are working with five of the largest banks in the world to help fund the buildout of more data centers using Nvidia GPUs. And it's just like unbelievable business. The entire world of AI is centered around this one company. And the earnings report is saying, it's going to be like this for a while. So buckle up because we are up only for the foreseeable future.

**Ejaaz** (3:21)
I just want to show everyone a chart which basically shows Nvidia's revenue breakdown over the last year or so. And it's just absolutely exponential and crazy. Now, I want to give a bit of background as to why this is happening with Nvidia, especially recently. Like why do they continue to earn more money even though everyone's accusing them of building up this massive bubble? Well, there's a few things that are happening. The most obvious one being is they've just raised the prices of all their GPUs by 15 percent. Now, granted, a lot of that is because the cost of memory has absolutely soared. So, you know, those memory stocks have also been very volatile recently. Nvidia has to pay the most for memory to build their own GPUs. So, that's a main reason why they're projecting more revenue in the future. That may not necessarily correlate with the profit side of things.