this is the crux - if nvidia makes it so that open weights end up running better on nvidia hardware than competitor's, then it's going to prevent hardware innovation and competitiveness in the entire sector.
It's like as tho General Motors buys out oil refinery to make gas for all, but the gas somehow runs smoother in GM cars.
NVidia is delivering commodity hardware to the hyperscalers, and would eventually get commodity margins (when hyperscalers make their models work on their own hardware).
Amazing article on relevant economics of squeezing vendors - actually about antitrust ad-models but:
The answer is that [advertising based] companies are an ideal test case for an increasingly common business meta-model, where companies try to create a consumer surplus at one end in order to maximize their negotiating leverage for capturing the producer surplus everywhere else in their supply chain.
Perhaps not relevant to huggingface, sorry.
Couldnt they just take those models anyway?