Nvidia-Backed Hugging Face CEO Makes 6 Predictions For 2025: Count on Robotics Progress, Valuation Cuts For AI – NVIDIA (NASDAQ:NVDA)

Many firms dealing in synthetic intelligence (AI) noticed their valuations skyrocket in 2024. Nvidia Company NVDA, for instance, grew to become probably the most invaluable firm on the earth a number of instances all year long.

One CEO of an AI firm predicts 2025 can be a unique state of affairs, and there might be at the very least one unnamed firm within the house that sees its market capitalization minimize in half.

What Occurred: Hugging Face co-founder and CEO Clem Delangue shared his 2025 predictions in a LinkedIn put up:

• There would be the first main public protest associated to AI
• A giant firm will see its market cap divided by two or extra due to AI
• No less than 100,000 private AI robots can be pre-ordered
• China will begin to lead the AI race (as a consequence of main the open-source AI race)
• There can be huge breakthroughs in AI for biology and chemistry
• We are going to start to see the financial and employment progress potential of AI, with 15M AI builders on Hugging Face

Primarily based on prediction three above, Delangue sees robust demand for private AI robots, which might be music to the ears of Tesla Inc TSLA buyers. The Austin, Texas-based carmaker is anticipated to share extra particulars on its Optimus Bot in 2025 and start taking pre-orders.

Different buyers, notably these within the AI house, will possible not love seeing a few of Delangue’s predictions come true.

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Why It is Necessary: Delangue’s 2025 predictions needs to be taken critically. In any case, the CEO shared how his 2024 predictions did in the identical put up. A inexperienced examine mark signifies successful whereas crimson circles imply he missed.

• A hyped AI firm will go bankrupt or get acquired for a ridiculously low value (inexperienced examine)
• Open-source LLMs will attain the extent of the perfect closed-source LLMs (inexperienced examine)
• Massive breakthroughs in AI for video, time-series, biology and chemistry (inexperienced examine for video, crimson circle for time-series, biology and chemistry)
• We are going to speak rather more about the price (financial and environmental) of AI (inexperienced examine for financial, crimson circle for environmental)
• A well-liked media can be largely AI-generated (inexperienced examine)
• 10 million AI builders on Hugging Face resulting in no improve of unemployment (says quickly, whereas itemizing 7M of AI builders on Hugging Face)

With Delangue on the helm, Hugging Face raised $235 million in a funding spherical, which valued the corporate at $4.5 billion in August 2023.

The corporate’s buyers embody Nvidia, Alphabet Inc GOOGGOOGL, Amazon.com Inc AMZN, Superior Micro Gadgets AMD, Intel Company INTC, Worldwide Enterprise Machines IBM and Qualcomm Inc QCOM.

Hugging Face has partnerships with a number of of those buyers. The corporate introduced a partnership with Nvidia for the robotics sector final month. Earlier this yr, Hugging Face additionally partnered with Amazon to work on AI fashions.

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