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NVIDIA
THE TECHNOLOGY STACK AT THE CORE OF EVERYTHING WE COVER
Welcome back to the OptimusEdge. NVIDIA reported a $96.2 billion quarter this week.
Then, one day later, it reportedly agreed to spend $12.9 billion of it on a single company.
Meanwhile, a robotics IPO lost half its value, OpenAI shipped its own chip, and physics AI took a swing at the architecture behind almost everything else in this newsletter.
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The Edge Upload: Today’s Insights
NVIDIA's reported $12.9B bid for Hugging Face and the security incident that makes the timing louder
A $96.2B quarter and Vera Rubin's move into full production
OpenAI's first custom inference chip, built with Broadcom in 16 months
A $66B robotics IPO that lost nearly half its value in a week
One free tool to fact-check every chip spec mentioned below
Big week. Let's get into it.
HIGHLIGHT OF THE WEEK: NVIDIA’S REPORTED BID FOR HUGGING FACE
The deal. Multiple outlets TechCrunch, Bloomberg, CNBC, The Information reported NVIDIA agreed to buy Hugging Face for $12.9 billion.
Not signed yet. Both sides have declined to comment.
If it closes, it's NVIDIA's biggest acquisition ever nearly double what it paid for Mellanox in 2020.
Why it's not really a chip story. NVIDIA sells the hardware underneath AI. Hugging Face is one layer up where the models themselves live, over 2.4 million of them.
Own both layers, and you own the shovel and where people go to find gold.
The context that makes it louder. Last month, Hugging Face was hit by a security incident an OpenAI model reportedly breached its own protocol to access the platform.
Weeks later, Jensen Huang posted publicly in defense of open models. Coincidence or not, the timing is hard to ignore.
What to watch. If it closes, expect real antitrust attention not because $12.9B is huge on its own, but because Hugging Face sits at the exact chokepoint between every open model and the hardware running it.
The open question: would NVIDIA keep Hugging Face genuinely open or would "open" quietly start meaning "runs best on NVIDIA"?
NVIDIA’s - The Hugging Face Play: "Owning the shovel AND where they dig for gold"
THIS WEEK IN NVIDIA
Earnings, and they were not close. Q2 FY2027 revenue hit $96.2 billion, up 106% year-over-year. Data center alone: $89.0 billion, up 117%. Vera Rubin is now in full production, running at CoreWeave, Google Cloud, Azure, Oracle, and Nebius.
AWS just ordered 2 million more GPUs. A new deal adds 2 million GPUs and next-gen infrastructure. Built specifically for agentic and physical AI workloads.
Edge robotics got a new entry point. NVIDIA launched the Jetson Orin Nano 2. An entry-level robotics computer for edge AI exactly what shows up in Thursday's issues.
THIS WEEK IN BROADER AI SPACE
OpenAI built its own chip. Jalapeño, OpenAI's first custom inference chip, was taped out with Broadcom in just 16 months. 13.4 PFLOPs at 700W, paired with HBM4 at 15.4 TB/s. A real, credible entrant into NVIDIA's own territory.
Cheaper models are winning real budget. Corporate spending is shifting toward lower-cost models for everyday work. Frontier "flagship" models are increasingly showcases, not the default production choice.
A new physics AI skipped Transformers entirely. Caltech's Accelerated Understanding runs on neural operators instead. A different architecture than nearly everything else in this newsletter.
"Jalapeño" - OpenAI & Broadcom’s spicy new entrant into hardware territory
THIS WEEK IN ROBOTICS & PHYSICAL AI
A robotics IPO just got a hard reality check. Unitree, China's leading robot maker, lost nearly half its value this week after a $66 billion IPO debut. Robots' physical capabilities keep improving. What they still lack: the know-how to do actual value-creating work.
The real bottleneck isn't hardware. At last week's Actuate conference, developers building AI "brains" for robots pointed to a familiar culprit a lack of high-quality training data. Sound familiar? It's the same data-pipeline problem we covered for language models, just wearing a robot body now.
RESOURCES OF THE WEEK
Epoch AI's Machine Learning Hardware Database: free, continuously updated, and useful for cutting through a week like this one real specs on every chip mentioned above, no vendor spin attached.
COMING UP THIS WEEK
Monday: NVIDIA's DGX SuperPOD. Tuesday: RAPIDS. Wednesday: NVIDIA NIM. Thursday: Omniverse.
Friday & Saturday: two more agent design explorations, including a financial fraud detection agent.
See you tomorrow.
That’s it for today !☀
Edge AI is levelling up are you? Until next time, stay curious, stay building, and don’t let your machines take over. 🤖😆
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Your Edge AI Explorer,
Sharat Sami (Let’s connect on LinkedIn)