This is about how much does it cost to get a correct outcome from your AI and Nvidia wants to be in front of this, access to more developers, access to more enterprises. And if you think about the size of this price tag versus the investment portfolio and the balance sheet that Nvidia has, it's a small price to pay for I don't know, 200,000 enterprises and 18 million developers that are now going to be at their disposal and part of the Nvidia ecosystem.

You could also say Jensen is hedging open source open weight models because Open AI is going to build its own silicon with the jalapeno chip in partnership with Broadcom. So I think there's a little bit of hedging going on all around, but I don't think the number one reason to do this is hedging. I think what we're seeing is open router data showing us that demand for paid tokens doubled in a month, it's up 25 times year to date.

The goal is to bring the cost of intelligence, meaning that correct outcome cost down as much as possible because what we're seeing is Jevin's paradox, right? Exponential growth of token demand. So, all of these things together, Jensen's playing all sides.

I have no doubt in my mind that Open AI, Anthropic, Google will continue to use uh Nvidia. You could see that in their forecast last week. But all of them are hedging on infrastructure in some ways. And of course, Jensen wants to be the infrastructure partner and be part of the development of models that can democratize intelligence and make it more affordable at scale.

So, if I'm an Nvidia investor Dan and I'm listening to this, I mean, listen, it's a $5.5 trillion dollar company. Do I look at this hugging face move as, you know, this is something that could financially move the needle or no, this is this is more of a a strategic play?

I think it's both. I don't think you can directly correlate the 150 million or so in revenue and say that this is going to drive immediate returns, but if you're looking from the outside, Nvidia is building that platform, right? That top to bottom platform, the infrastructure, the systems, the frameworks, the models. And of course now you add hundreds of thousands of enterprises, tens of millions of developers, running hundreds of millions of models that are increasingly being developed to solve specific problems

at better economics than the frontiers. So, I think it's an end. I think the natural, um, you know, kind of narrative in the market is always that everything is zero sum. If someone builds their own chip, it means it's going to replace Nvidia. If Nvidia starts working with hugging face, it means they're going to create a rift with Open AI. and I think that's really only the case when it's Sam Altman and Elon Musk. I think otherwise, we're seeing what I call an era of abundance.