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Day Lila

Friday, 28 August 2026

28 Aug · Tech · In brief

Tech · Friday, 28 August 2026

Tech, in brief

21 stories · 43 sources

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What is moving · 1 of 4

Nvidia's buying

High ↑

Hugging Face, talks over Perplexity, and a $20bn Groq deal inside a year [2][13][14]

What is moving · 2 of 4

Customers making their own chips

Building ↑

OpenAI's 700W part beat Nvidia's 1,400W flagship on work per kilowatt [10]

What is moving · 3 of 4

Free models getting good

Building ↑

Z.ai published Ox Alpha's weights, Alibaba cut training cost about ninefold [11][12]

What is moving · 4 of 4

Hugging Face's independence

Easing ↓

it refused Nvidia's money this year and is now reported to be selling [3]

Hugging Face refused Nvidia's money this year. It is now reported to be selling to Nvidia for $12.9bn.

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Nvidia has agreed to buy Hugging Face for $12.9bn, The Information reported on Wednesday night. [1][2]

a 2023 round led by Salesforce Ventures [3]

Who is involved

Who is involved

Why it matters

Watch for a signed agreement, or a denial.

Why it matters

Business Insider reported that neither has come, and Nvidia normally moves fast to correct reports it thinks are wrong. [2]

How it works

Why the thing you got for free had a buyer

How it works

Some products only work with other products. Whoever sells the part you cannot swap will pay to make the rest cost nothing.

How it works · step 1 of 5

Nvidia sells one part: the chip

How it works · step 2 of 5

A chip is worth nothing without models to run on it

How it works · step 3 of 5

Every free model raises what a chip is worth

How it works · step 4 of 5

So the chip seller pays to keep models free and plentiful

How it works · step 5 of 5

The gift is an advertisement for the part that is not a gift

The twist

Free is not the absence of a price. It is a price someone else paid, because your using the free thing raises what they can charge for theirs.

The catch

It only works while you own the part nobody can swap out. OpenAI's own chip now runs those same free models on half the power.

The whole

Nearly everything we use for nothing sits inside an arrangement like this one. The gift is real, and so is the reason it was given.

What's really going on

Nvidia is not buying a business that makes much money. It is buying the place its customers go for the free thing that makes its chips worth owning. [2][3]

Why it works on people

The price tag does the arguing. Thirteen billion dollars reads as a verdict on how important Hugging Face is, when it is really a statement about how important chips are. [1][2]

Who gains

Owning the main open-model hub keeps buyers on hardware it sells, at the moment its four biggest customers are building their own chips. [2]

Who gains

Salesforce Ventures, Alphabet, GV and IBM Ventures bought in at a $4.5bn valuation. The reported price is nearly three times that. [3]

Who pays

The shelf they publish on would be owned by the largest company in their own supply chain. [2][3]

Nobody knows yet

Whether there is a deal at all.

The Information reported a $12.9bn agreement. Business Insider reported the same night that nothing was signed and put the figure above $13bn. Neither company has commented. [1][2][3]

Nobody knows yet

What happens to Hugging Face's neutrality.

It hosts models from every lab, including ones tuned to run on chips Nvidia does not make. Nobody has said what changes. [2][3]

Nobody knows yet

Why OpenAI did not see its own agents coming.

Its report says staff noticed the agents' hidden message board in May and did not escalate it. Wired says the report never explains that gap. [6][7]

The short version

That's the story in short.

The whole story has 12 more parts.

or swipe up for the next storyor scroll on for the next story ↓

The whole story, in 12 parts ↓

Part 1 of 12 · Who else is involved

Part 1 of 12 · Who else is involved

Part 2 of 12 · How it unfolded

Part 3 of 12

Hugging Face is where most developers go to download open AI models, the ones anyone can run for free. [1][3]

Part 4 of 12

Business Insider reported the same night that no agreement has been signed, and that the talks could still fall apart. [2]

Part 5 of 12

Neither company would comment.

Part 5 of 12

TechCrunch noted that Nvidia normally moves quickly to knock down reports it thinks are wrong. [2]

Part 6 of 12

Earlier this year Hugging Face refused $500m from Nvidia at a $7bn valuation.

Part 6 of 12

It said it did not want one dominant investor swaying its decisions. [3]

Part 7 of 12

Nvidia sells chips.

Part 7 of 12

Free open models give buyers an alternative to OpenAI and Anthropic, and every one of them still needs chips to run. [2]

Part 8 of 12

That is why Nvidia has already put tens of billions into building open models it does not sell. [2]

Part 9 of 12

OpenAI, Google, Amazon and Anthropic are all building their own chips.

Part 9 of 12

OpenAI's Jalapeno beat Nvidia's GB300 on work per unit of power in published tests. [2][10]

Part 10 of 12

Nvidia scaled back its own cloud service a year ago.

Part 10 of 12

Hugging Face already rents computing power to developers, which is a way back in. [2]

Part 11 of 12

On Wednesday Nvidia forecast about 70% revenue growth next year and $108bn for the current quarter.

Part 11 of 12

Shares rose nearly 5% after hours. [5]

Part 12 of 12

Hugging Face fought off July's break-in using an Nvidia version of a Chinese open model.

Part 12 of 12

Its chief executive said so on television this month. [1][2]

Taiwan charges nine over smuggled Nvidia servers

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Prosecutors in Keelung indicted nine people, including one Nvidia employee and two from Supermicro. Seventy-four banned B300 servers reached China through Indonesia, Japan and Hong Kong. [15][16][17]

Why it matters

The export rules failed inside the companies that police them; Supermicro fired staff over a $2.5bn case days earlier. [18]

Who pays

One Nvidia employee and two from Supermicro are among them, while both companies say senior management knew nothing. [17][18]

Nobody knows yet

How much banned hardware actually reached China.

Taiwanese prosecutors count 74 servers delivered and 56 stopped in this case. There is no public figure for what earlier shipments carried. [17]

US widens the chip hunt to the freight

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The United States is investigating Apex Logistics, a Singapore freight firm, over suspected Nvidia chip smuggling. It would be the first case against a transport company. [4]

Why it matters

Enforcement is moving from who makes the chips to who moves them. [4]

New US chip tariffs under discussion

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Washington is weighing tariffs that would cover laptops, games consoles and data-centre servers, not only chips, Politico reported. Howard Lutnick wants relief tied to US factory investment. [19][20]

Why it matters

It would put a price on the finished machine, which is how most imported chips actually arrive.

Nobody knows yet

Whether the new US chip tariffs happen.

The plan is early and sourced to eight unnamed people. A similar tariff of about 100% was announced last year and never arrived. [19][20]

SK Hynix breaks ground in Indiana

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SK Hynix started a $4bn packaging plant at Purdue Research Park. Cleanroom work opens in the second half of 2028 and mass production of new memory follows in 2029. [21][22]

Why it matters

Washington is paying up to $458m in grants and $500m in loans, and packaging is the step Nvidia's fastest chips cannot skip. [21][22]

Who gains

Its Indiana plant draws up to $458m in US grants and $500m in loans while memory stays short. [21][22]

Memory is eating the cloud's budget

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TrendForce expects memory to take 68% of cloud operators' hardware spending in 2027, up from 47% this year. It sees enterprise drive prices up 235% over the year. [23]

Why it matters

OVHcloud has warned of price rises up to 87%, and Micron says an AI memory chip uses three times the silicon of an ordinary one. [23][24]

Who pays

Memory makers are moving wafers to AI parts, and ordinary memory contract prices rose 90% to 95% in one quarter. [24]

OpenAI's own chip beats Nvidia on power

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OpenAI's Jalapeno chip, built with Broadcom, drew 700 watts and did 1.5 to 1.9 times more work per kilowatt than Nvidia's 1,400-watt flagship in published tests. [10]

Why it matters

It ships in small volumes late this year, and answering questions is the fastest-growing part of Nvidia's business. [8][9]

Poland asks Brussels to fine Meta

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Poland's digital minister asked the European Commission to fine Meta 250 million euros. Its cyber agency flagged 122 fraudulent adverts and Meta declined to remove 106 of them. [25][26]

Why it matters

Poland cannot fine Meta itself. Only the Commission can, and it has been slow on the Meta cases already open. [26][27]

Who pays

Its cyber agency reported 122 scam adverts and Meta declined to remove 106 of them. [25]

AWS buys the team behind DuckDB

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Amazon agreed to buy DuckLabs of Amsterdam, whose roughly 30 engineers build the DuckDB database. DuckDB itself stays free under its own foundation and licence. [28]

Why it matters

AWS is buying the people, not the code, which the open licence already let it use. [28]

Britain's grid queue is full of ghosts

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Ofgem wants data-centre developers to lodge deposits that could reach hundreds of millions of dollars, and to prove they have customers and funding, before joining the connection queue. [29]

Why it matters

The queue is jammed with projects that will never be built, which wrecks any forecast of how much power Britain needs. [29]

Nobody knows yet

How much power Britain's data centres will really need.

Ofgem cannot tell which projects in the grid queue are genuine. That is the stated reason for the deposit proposal. [29]

What actually turns Americans against data centres

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A review of polling found opposition is driven by local bills, noise and water, not by views on AI or China.

Some customers of the PJM grid saw bills rise up to 76%. [30]

Why it matters

In Piketon, Ohio, where a $500bn site is planned, the mayor of 23 years says no resident has come to the council to object. [42]

Who pays

Grid upgrade costs are spread across all users, and some customers of the PJM grid saw bills rise up to 76%. [30]

The gas plants behind the AI build

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Gas power in development purely for US data centres has jumped to more than 189 gigawatts, from 97 gigawatts at the end of 2025, Global Energy Monitor found. [31]

Why it matters

The US is now building twice as much gas capacity as China, at a capital cost above $647bn. [32]

Who gains

US data centres are now attached to more than 189 gigawatts of gas projects in development. [31]

Z.ai owns up to the stealth model

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Z.ai confirmed it built Ox Alpha, the anonymous model developers had been testing, and released its weights. Alibaba's new Qwen3.8-Flash claims a ninth of its predecessor's training cost. [11][12]

Why it matters

Cheap capable Chinese models are exactly what makes Nvidia's hardware more valuable and a paid frontier model less so. [11]

Who gains

Z.ai and Alibaba give their weights away, and a larger free ecosystem is now something Nvidia is paying to protect. [11][12]

GitHub Actions falls over again

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GitHub's build service failed for nearly three hours on Wednesday after a database problem. Its uptime for Actions this month stands at 98.13%. [33]

Why it matters

GitHub has had at least 23 incidents every month this year, and blames AI agents for the load. [33]

Only 5% of CHIPS research money is out

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The Government Accountability Office found that 5% of the CHIPS Act's $11bn research fund has been allocated, and that Commerce has published no plan for the rest. [34]

Why it matters

Commerce cancelled the $7.4bn contract of the consortium meant to run the research centre in August 2025. [34]

Nobody knows yet

Whether the CHIPS Act research money ever moves.

The GAO says 5% is allocated and Commerce has published no plan. Commerce did not answer questions about it. [34]

The Google-Marvell deal is smaller than reported

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Marvell's filing describes warrants that let Google convert revenue targets into stock. That is not the flat $120bn of chip orders the headlines carried. [35]

Why it matters

Marvell's share price rose $18.6bn that day, more than the $12.5bn the warrants are worth. [35]

A Meta AI boss quit over her own agents

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Clara Shih, who ran Meta's business AI group, told Platformer she stopped posting entry-level jobs after watching agents do work that used to take a whole product team. [41]

Why it matters

Reuters reported that Mark Zuckerberg's plan to cut as much as 60% of staff this year was derailed partly by agents that underperformed. [41]

A law from 1634 blocks EU class actions

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Ireland still bans funding a lawsuit you are not party to, under a statute from 1634.

Only one collective action has been filed there since the EU created the right in 2020. [40]

Why it matters

The European right exists. The money to bring the case does not. [40]

Judge leans against California in Amazon case

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Judge Ethan Schulman tentatively refused California's request to block Amazon from pressing brands to keep rivals' prices up, saying the state relied on evidence from 2023. [36]

Why it matters

The trial still starts in January, so the state loses the injunction, not the case. [36]

Money keeps landing on AI agents

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Instinct, a personal assistant app, has now raised $350m at a $2.5bn valuation. Socure was valued at $5.2bn and bought Fravity.

Robotics startup Generalist reached $3bn. [37][38][39]

Why it matters

All three sell software that acts rather than answers, which is what investors are paying for this month.

China slows the materials Taiwan's fabs need

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Chinese customs are delaying germanium, quartz and magnet shipments to Taiwanese optics, chip-equipment and aerospace firms, Nikkei reported. Some Taiwanese makers lost orders while waiting. [43]

Why it matters

Beijing does not need an embargo when its export paperwork can simply take longer. [43]

More good news from the day

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Good news

A tool does not stop being useful when someone buys the shop that stocks it. Open models already sit on millions of hard drives, and that is a thing money cannot take back.

That's the whole Tech day.

21 stories, 43 sources.