The massive acquisition of Hugging Face by Nvidia is fundamentally changing the technology industry, giving the chip giant a significant position in software amid the active development of proprietary artificial intelligence infrastructure by all companies. Anthony Neri, CEO of Hewlett Packard Enterprise, openly supports this move, noting that it grants Nvidia access to crucial developer hubs and up-to-date global market data.
By integrating Hugging Face, Nvidia has gained the world's largest library of AI models, which serves 18 million developers and over 200,000 enterprises. The company can now track in real time what tools programmers are using. Meanwhile, despite the attention drawn by the Hugging Face news, HPE demonstrated impressive results in its latest quarterly report.
The company's revenue reached $12.21 billion, representing a 34% increase compared to the same period last year. Earnings per share stood at $1.11, exceeding Wall Street analysts' expectations. This growth is attributed to enterprises actively purchasing servers for AI and networking equipment as soon as opportunities arise. Orders are at an all-time high. Neri emphasized that demand for routers and high-performance servers is steadily increasing.
Industry experts know that modern technology stacks function based on a combination of custom models, open-source projects, and weight-based architectures. Neri noted that China is a major player in open source, making companies' participation in these communities vital for maintaining the health of the industry. Hardware manufacturers are now focused on how these models run on their chips to enable the next generation of AI agents.
The convergence of hardware and software is finally happening. The global infrastructure depends on this fusion of silicon and code. Tech giants constantly weigh the pros and cons of maintaining closed systems versus supporting open community efforts. When a hardware company knows exactly what developers are creating, it can adjust its production lines according to actual market demand.
Looking at the long term, HPE raised its revenue growth forecast for 2027 to a range of 13% to 17%, with profits projected to increase by approximately 16% over the same period. Neri remains confident that sales of networking equipment and servers will remain strong, providing the company with a clear path for development over the next decade.