According to Bloomberg, Nvidia struck a roughly $13 billion deal for Hugging Face, the open-source AI model hub. Snowflake shares jumped after the company raised its full-year sales outlook and reported that 2,000+ new customer accounts adopted its AI coding assistant CoCo this quarter alone. Total CoCo users now stand at 9,100 accounts. Meta also traded higher on unveiling a stronger AI model.
The AI trade is maturing. Wall Street still rewards model announcements, but it's paying a premium for distribution and lock-in. Companies that can show paying customers actually using their AI products in production get the money. Snowflake's pop wasn't about a new model. It was about adoption velocity. Nvidia's Hugging Face move signals the same thing: control the developer workflow, and you control where AI gets built.
Nvidia is buying a front-row seat in the developer workflow. Chips alone don't guarantee control over where AI gets built or which tools become default. Snowflake's stock pop points to the same lesson from the software side: if your AI product gets used by thousands of paying accounts, Wall Street will forgive a lot and reward more. The number to watch is 9,100. That's not hype. That's receipts.
Filed to the Technology desk · Sep 3