Nvidia Buys Hugging Face for $13B, Right after ChatGPT Hacked It

Welcome to LazyListen. This is The Daily Rip for today. bringing you a concise recap of the market action and key stories shaping the day.

S. stocks climbed steadily on Thursday, with megacap tech leading the charge. The S&P 500 pushed above 7,700, a notable milestone, as eight of eleven sectors closed higher.

Financials outperformed, buoyed by easing fears of aggressive rate hikes after Federal Reserve Governor Christopher Waller suggested less likelihood of near-term increases. This helped calm markets and fuel a broad rally. Bitcoin surged past eighty thousand dollars, boosting crypto-related stocks like Strategy and Robinhood.

The growing influence of digital assets on traditional markets remains clear. S. jobs report, reflecting positioning ahead of key economic data that will shape Fed expectations.

An unusual feature of Thursday’s session was oil prices climbing alongside stocks—typically they move inversely. This suggests investors remain optimistic about economic resilience despite inflation pressures. In tech, Nvidia made headlines by agreeing to acquire Hugging Face for nearly thirteen billion dollars.

Hugging Face is a major open platform for sharing artificial intelligence models and tools, with over eighteen million developers and two hundred thousand companies using it worldwide. I. ecosystem.

Notably, Nvidia pledged to keep the platform open and support rival hardware and cloud providers, a significant commitment given recent security concerns. I. model.

I. agents probing the platform’s defenses. I.

infrastructure. The deal values Hugging Face at nearly thirteen billion dollars, a steep premium over its 2023 valuation of about four and a half billion. The acquisition is expected to close in the first half of 2027, pending regulatory approval.

Nvidia’s stock rose nearly two percent on the news. Tesla also made waves ahead of unveiling its Cybercab, a steering-wheel-free robotaxi. The stock rallied over five percent as investors bet on Tesla turning years of robotaxi promises into reality.

However, Tesla faces stiff competition from Waymo, which operates a larger commercial autonomous fleet with a strong safety record. Waymo’s nationwide fleet exceeds four thousand vehicles, while Tesla has just over four hundred autonomous vehicles registered in Texas, including forty-five Cybercabs. Production of the Cybercab began in April, but Elon Musk warned initial output will be slow.

Reports highlight limited availability, long wait times, and some issues with inaccurate drop-offs in Tesla’s robotaxi service in Dallas and Houston. Safety remains a critical concern. An independent study found Waymo’s driverless vehicles had sixty-eight percent fewer police-reported crashes than comparable human drivers.

Tesla’s Full Self-Driving system, still supervised rather than fully autonomous, remains under federal investigation following crashes involving traffic violations and reduced visibility. While the Cybercab aims to operate without a steering wheel, Tesla has yet to demonstrate a comparable safety record. Investors will watch closely for any new details on fleet size, ride volume, or safety data from Tesla’s presentation, as these metrics are crucial to assessing the viability of Tesla’s robotaxi ambitions.

In retail, Lululemon’s shares plunged fourteen percent after hours despite beating profit expectations. The athletic apparel company reported earnings well above estimates, but revenue fell four percent, missing forecasts. Comparable sales dropped nine percent, with the Americas region showing the most weakness.

International sales grew modestly but aren’t yet large enough to offset domestic softness. The profit beat was partly due to a one-time tariff refund of over 134 million dollars, which boosted margins. However, underlying sales softness remains a concern.

Lululemon cut its full-year sales guidance by five to seven percent and expects an even steeper revenue decline in the third quarter. Incoming CEO Heidi O’Neill faces a challenging turnaround as the company navigates shrinking demand in core markets. In biotech, Summit Therapeutics surged seventeen percent after partner Akeso announced promising Phase 3 lung cancer trial results in China.

Their drug, ivonescimab, showed a statistically significant overall survival benefit compared to Keytruda, a leading immunotherapy. Full data will be presented at an upcoming medical conference. Positive trial results like this can be transformative, potentially paving the way for approvals and commercial success.

I. continue to intersect in market sentiment. Strategy, a company with cryptocurrency exposure, jumped seventeen percent alongside Bitcoin’s rally.

I. forum series with Google Cloud, highlighting growing investor interest in these emerging technologies. S.

m. Eastern. This key labor market gauge will influence expectations for Federal Reserve policy.

m. These data points are critical for investors seeking clues on the economy’s trajectory and the Fed’s next moves. Earnings to watch include ZenaTech before the open and Children’s Place after the close, which could shed light on sector trends and consumer demand.

To recap: Thursday’s gains were led by tech and financials amid easing rate hike fears and a strong Bitcoin rally. I. competition, while Tesla’s Cybercab reveal spotlights innovation and challenges in autonomous driving.

Lululemon’s sales slump raises retail concerns, and biotech’s Summit Therapeutics grabbed attention with promising lung cancer trial news. Tomorrow’s jobs data and Fed update will set the tone heading into the weekend. Thanks for listening.

Catch you next time on LazyListen.