Nvidia-Backed Hugging Face CEO Makes 6 Predictions For 2025: Expect Robotics Growth, Valuation Cuts For AI

In 2024, numerous companies involved in artificial intelligence (AI) experienced a significant surge in their valuations. Nvidia Corporation NVDA was notably recognized as the world's most valuable company on several occasions throughout the year.

However, Clem Delangue, the co-founder and CEO of Hugging Face, believes that 2025 could present a different landscape. He foresees that at least one unidentified company within the AI sector may see its market value slashed by fifty percent or more.

In a recent LinkedIn post, Delangue outlined his predictions for the upcoming year:

• The first significant public protest relating to AI will take place.
• A large company in the AI industry may see its market capitalization cut in half or more.
• There will be pre-orders for at least 100,000 personal AI robots.
• China will emerge as a frontrunner in the AI race, driven by advancements in open-source AI.
• Major breakthroughs will occur in AI applications for biology and chemistry.
• We will start to recognize the economic and employment growth potential of AI, with an estimated 15 million AI builders on Hugging Face.

Delangue's third prediction indicates a notable demand for personal AI robots, which may provide good news for Tesla Inc TSLA investors. The Austin-based company is set to reveal more about its Optimus Bot in 2025 and is expected to start taking pre-orders.

Not all investors, particularly those heavily invested in AI, may be pleased if some of Delangue's predictions materialize.

Why It Matters: Delangue's forecasts for 2025 warrant attention, especially since he also evaluated his predictions for 2024 within the same post. A green checkmark indicates success while red circles denote misses.

• An overhyped AI company will face bankruptcy or be acquired for a remarkably low price (green check).
• Open-source large language models (LLMs) will match the quality of the best closed-source LLMs (green check).
• There will be significant breakthroughs in AI for video, time-series, biology, and chemistry (success for video, miss for time-series, biology, and chemistry).
• Discussions around the costs, both monetary and environmental, of AI will increase (green check for monetary, miss for environmental).
• A popular media outlet will predominantly feature AI-generated content (green check).
• 10 million AI builders on Hugging Face will lead to no rise in unemployment (currently listing 7 million AI builders on Hugging Face).

Under Delangue's leadership, Hugging Face successfully raised $235 million in funding, valuing the company at $4.5 billion as of August 2023.

Its investors include major players like Nvidia, Alphabet Inc GOOG GOOGL, Amazon.com Inc AMZN, Advanced Micro Devices AMD, Intel Corporation INTC, International Business Machines IBM, and Qualcomm Inc QCOM.

Hugging Face has established partnerships with several of these investors. Recently, the company announced a collaboration with Nvidia focusing on the robotics sector. Earlier in the year, Hugging Face also partnered with Amazon to enhance AI model development.

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Image: Shutterstock

AI, Robotics, Predictions