Nvidia CEO Jensen Huang just made one of the biggest moves of the AI buildout.

Nvidia is buying Hugging Face for $12.9 billion.

This deal significantly alters the balance of power in artificial intelligence.

And I think it's fantastic news for Nvidia shareholders.

To understand why, you need to understand the battle quietly taking place behind the scenes.

Right now, companies like OpenAI and Anthropic are building some of the world's most powerful AI models.

• You ask ChatGPT a question, and OpenAI's model generates the answer.

• You ask Claude a question, and Anthropic’s model generates the answer.

These companies want their models sitting at the center of the AI economy.

But Jensen Huang has a different vision.

And his purchase of Hugging Face is making it happen.

Hugging Face: The “Library” of AI

Say you're a software developer and you have an idea for a new AI product.

Maybe you want to build an AI stockpicker.

You could build the AI model yourself.

That would mean:

• Gathering enormous amounts of historical stock prices, earnings reports, financial statements, economic data, and other information

• Designing the AI model

• Training it to recognize patterns in all that data

• Testing it

• Improving it

• And paying for the enormous amount of computing power required along the way

You could spend months – or years – just building the underlying AI before you ever get around to building the actual stockpicker.

Or you can use Hugging Face.

There, you can search through millions of AI models that other developers and companies have already built.

Maybe you find a model that's already been trained to understand financial documents.

You find another that can analyze earnings call transcripts.

Another specializes in identifying patterns in financial data.

Instead of starting from zero, you use these existing models as building blocks.

You take one of them, customize it using your own stock-market data, combine it with other models, and build your stockpicker on top of it.

More than 18 million developers, researchers, and creators rely on this platform today.

It contains more than 3 million AI models, 500,000 datasets, and 1 million AI applications.

It’s the platform sitting in the middle of the AI ecosystem.

And Nvidia just bought it.

Here’s Where Things Get Interesting…

OpenAI and Anthropic are already two of Nvidia’s most important customers.

And the bigger they become, the more computing power they need.

At the same time, both companies are also developing their own chips to decrease some of the reliance on Nvidia.

• Reuters just reported that Anthropic is in talks to acquire AI chip startup MatX for $7 billion.

• Meanwhile, OpenAI introduced its own AI chip, Jalapeno, within the last few months.

This doesn't mean Nvidia loses if they succeed, of course.

OpenAI and Anthropic are spending enormous amounts of money on Nvidia hardware and will remain major Nvidia customers in the future.

But Jensen Huang has a broader plan that turns the tables on OpenAI and Anthropic.

Remember, the real prize for these companies goes far beyond getting you or me to pay $20/month for ChatGPT.

It’s developers and enterprise customers.

These customers deploy AI across thousands of employees and can sign contracts worth millions of dollars.

That's why OpenAI and Anthropic are fighting so hard to become the platform developers and businesses build around.

And where do more than 18 million AI developers, researchers and creators already congregate?

Hugging Face.

OpenAI and Anthropic want to threaten Nvidia by making their own chips?

Two can play at that game.

Nvidia just bought the library used by their most prized customers.

Jensen’s plan is to:

• Give developers more models.

• Give them more tools.

• Give them easier ways to customize those models.

• Give users an easier way to deploy them.

This “open source” playbook puts AI in the hands of everyone.

More competition leads to faster innovation, lower costs, better AI products, and of course, more compute demand.

And who’s the largest supplier of AI compute in the world?

Nvidia.

Nvidia: My Highest-Conviction Stock

Nvidia is already my highest-conviction stock.

This deal only strengthens my conviction.

Jensen Huang just spent $12.9 billion to put Nvidia closer to the millions of developers and businesses deciding how AI gets built and deployed.

And the strategy feeds directly into Nvidia’s core business.

Make AI easier to build → Make it cheaper and more accessible → Give developers more choices → Help create millions of new AI applications.

All of this expands the AI ecosystem.

And a larger AI ecosystem requires more compute.

That’s what makes this such a powerful move.

Jensen isn’t betting on which AI model wins. He’s betting on more AI.

And there’s still no company better positioned to benefit from more AI than Nvidia.

That’s why it remains my highest-conviction stock.