--- title: Nvidia’s best customers are becoming its biggest threat description: Nvidia's reported $12.9-billion move to acquire Hugging Face is framed as a defensive play against its own biggest customers — Google, Amazon, Microsoft, Meta... canonical: https://daily.dev/posts/nvidia-s-best-customers-are-becoming-its-biggest-threat-xecurirmn twitter:card: summary_large_image twitter:site: @dailydotdev og:type: website og:site_name: daily.dev og:title: Nvidia’s best customers are becoming its biggest threat | daily.dev og:description: Nvidia's reported $12.9-billion move to acquire Hugging Face is framed as a defensive play against its own biggest customers — Google, Amazon, Microsoft, Meta... og:url: https://daily.dev/posts/nvidia-s-best-customers-are-becoming-its-biggest-threat-xecurirmn og:image: https://api.daily.dev/og/posts/XeCUrirmN.png og:image:alt: Nvidia’s best customers are becoming its biggest threat og:image:width: 1200 og:image:height: 630 og:locale: en --- > ## Documentation Index > Fetch the complete documentation index at: https://daily.dev/llms.txt > Use this file to discover all available pages before exploring further. # Nvidia’s best customers are becoming its biggest threat **[TechCentral](https://daily.dev/sources/techcentral)** · 7 min read · 0 upvotes · 0 comments ## Summary Nvidia's reported $12.9-billion move to acquire Hugging Face is framed as a defensive play against its own biggest customers — Google, Amazon, Microsoft, Meta and OpenAI — who are all building custom AI chips to reduce reliance on Nvidia GPUs. With its Cuda hardware moat facing erosion, Nvidia is building a second moat around open-weight models (like its Nemotron 3 family) and, potentially, the platform that distributes them. Analysts note the strategy mirrors Microsoft's acquisition of GitHub, keeping developers defaulting to Nvidia even as hyperscalers pursue proprietary silicon. Nvidia's Q2 FY2027 revenue hit $96.2-billion, up 106% year-on-year, funding this long game alongside tens of billions invested in AI labs, which critics call circular financing. ## Full article daily.dev links to this article rather than hosting it. Read it at the original source: ## Questions this post answers ### Why would Nvidia want to buy Hugging Face if it already dominates the AI chip market? Nvidia's core GPU and Cuda dominance is under threat as its biggest customers—Google, Amazon, Microsoft, Meta, and OpenAI—build their own custom AI chips (TPUs, Trainium, Maia, MTIA). Owning Hugging Face, which hosts over a million model repositories including ones built for rival chips, would give Nvidia influence over the distribution layer of open AI and keep developers defaulting to its hardware ecosystem. _Developers weighing chip and platform lock-in risks can follow how this Nvidia-Hugging Face story develops on daily.dev._ ### How much revenue did Nvidia report for the second quarter of its 2027 fiscal year? Nvidia reported revenue of $96.2 billion for the second quarter of its 2027 fiscal year, up 106% year over year. The company also issued its first-ever year-ahead forecast, projecting about 70% growth in fiscal 2028 that would push revenue toward $690 billion, giving it enormous financial firepower relative to a $12.9 billion acquisition. _Anyone tracking Nvidia's financial trajectory and its bets on AI infrastructure can follow the numbers on daily.dev._ ### What custom AI chips are Google, Amazon, Microsoft, and Meta building to compete with Nvidia? Google is deploying its seventh-generation Ironwood TPUs and secured a commitment from Anthropic to use up to a million of them. Amazon has deployed over a million Trainium chips. Microsoft has its Maia accelerators, and Meta has its MTIA line. OpenAI is building silicon with Broadcom and has an alliance with AMD. Custom accelerators are expected to take close to 28% of the market in 2026. _Engineers evaluating AI infrastructure options can track how custom silicon versus Nvidia GPUs evolves on daily.dev._ --- Tags: [#open-source](https://daily.dev/tags/open-source), [#nvidia](https://daily.dev/tags/nvidia), [#gpu](https://daily.dev/tags/gpu), [#cuda](https://daily.dev/tags/cuda) [View this post on daily.dev](https://daily.dev/posts/nvidia-s-best-customers-are-becoming-its-biggest-threat-xecurirmn) ```json {"@context":"https://schema.org","@graph":[{"@type":"Organization","@id":"https://daily.dev/#organization","name":"daily.dev","url":"https://daily.dev","logo":{"@type":"ImageObject","url":"https://daily.dev/apple-touch-icon.png","width":180,"height":180},"sameAs":["https://twitter.com/dailydotdev","https://github.com/dailydotdev","https://www.linkedin.com/company/daily-dev-ltd"]},{"@type":"WebSite","@id":"https://daily.dev/#website","url":"https://daily.dev","name":"daily.dev","publisher":{"@id":"https://daily.dev/#organization"},"potentialAction":{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https://daily.dev/search?q={search_term_string}"},"query-input":"required name=search_term_string"}}]} {"@context":"https://schema.org","@type":"TechArticle","headline":"Nvidia’s best customers are becoming its biggest threat","url":"https://daily.dev/posts/nvidia-s-best-customers-are-becoming-its-biggest-threat-xecurirmn","mainEntityOfPage":{"@type":"WebPage","@id":"https://daily.dev/posts/nvidia-s-best-customers-are-becoming-its-biggest-threat-xecurirmn"},"datePublished":"2026-08-30T17:02:44.723Z","dateModified":"2026-08-30T17:04:09.505Z","description":"Nvidia's reported $12.9-billion move to acquire Hugging Face is framed as a defensive play against its own biggest customers — Google, Amazon, Microsoft, Meta...","image":"https://media.daily.dev/image/upload/f_auto,q_auto/v1/posts/980a2dcea2cb8a9f616bbc3fe805392a?_a=AQAEuop","thumbnailUrl":"https://media.daily.dev/image/upload/f_auto,q_auto/v1/posts/980a2dcea2cb8a9f616bbc3fe805392a?_a=AQAEuop","isAccessibleForFree":true,"articleSection":"TechCentral","inLanguage":"en","publisher":{"@type":"Organization","name":"daily.dev","url":"https://daily.dev","logo":{"@type":"ImageObject","url":"https://daily.dev/apple-touch-icon.png","width":180,"height":180}},"author":{"@type":"Organization","name":"TechCentral","logo":"https://media.daily.dev/image/upload/s--RsqLDZrL--/f_auto/v1717745297/logos/techcentral","url":"https://daily.dev/sources/techcentral"},"commentCount":0,"discussionUrl":"https://daily.dev/posts/nvidia-s-best-customers-are-becoming-its-biggest-threat-xecurirmn","interactionStatistic":[{"@type":"InteractionCounter","interactionType":{"@type":"LikeAction"},"userInteractionCount":0},{"@type":"InteractionCounter","interactionType":{"@type":"CommentAction"},"userInteractionCount":0}],"keywords":"open-source,nvidia,gpu,cuda","timeRequired":"PT7M"} {"@context":"https://schema.org","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https://daily.dev"},{"@type":"ListItem","position":2,"name":"TechCentral","item":"https://daily.dev/sources/techcentral"},{"@type":"ListItem","position":3,"name":"Nvidia’s best customers are becoming its biggest threat"}]} {"@context":"https://schema.org","@type":"FAQPage","@id":"https://daily.dev/posts/nvidia-s-best-customers-are-becoming-its-biggest-threat-xecurirmn#faq","mainEntity":[{"@type":"Question","name":"Why would Nvidia want to buy Hugging Face if it already dominates the AI chip market?","acceptedAnswer":{"@type":"Answer","text":"Nvidia's core GPU and Cuda dominance is under threat as its biggest customers—Google, Amazon, Microsoft, Meta, and OpenAI—build their own custom AI chips (TPUs, Trainium, Maia, MTIA). Owning Hugging Face, which hosts over a million model repositories including ones built for rival chips, would give Nvidia influence over the distribution layer of open AI and keep developers defaulting to its hardware ecosystem. Developers weighing chip and platform lock-in risks can follow how this Nvidia-Hugging Face story develops on daily.dev."}},{"@type":"Question","name":"How much revenue did Nvidia report for the second quarter of its 2027 fiscal year?","acceptedAnswer":{"@type":"Answer","text":"Nvidia reported revenue of $96.2 billion for the second quarter of its 2027 fiscal year, up 106% year over year. The company also issued its first-ever year-ahead forecast, projecting about 70% growth in fiscal 2028 that would push revenue toward $690 billion, giving it enormous financial firepower relative to a $12.9 billion acquisition. Anyone tracking Nvidia's financial trajectory and its bets on AI infrastructure can follow the numbers on daily.dev."}},{"@type":"Question","name":"What custom AI chips are Google, Amazon, Microsoft, and Meta building to compete with Nvidia?","acceptedAnswer":{"@type":"Answer","text":"Google is deploying its seventh-generation Ironwood TPUs and secured a commitment from Anthropic to use up to a million of them. Amazon has deployed over a million Trainium chips. Microsoft has its Maia accelerators, and Meta has its MTIA line. OpenAI is building silicon with Broadcom and has an alliance with AMD. Custom accelerators are expected to take close to 28% of the market in 2026. Engineers evaluating AI infrastructure options can track how custom silicon versus Nvidia GPUs evolves on daily.dev."}}]} ```