NVIDIA posts $96.2B, OpenAI unveils its own chip, and other tech news
NVIDIA reported record quarterly revenue and moved on Hugging Face while OpenAI claimed its in-house inference chip beats Blackwell. A roundup of the weeks major moves across the industry.
NVIDIA reported record second-quarter revenue of $96.2 billion. The same week brought acquisition talks over Hugging Face, OpenAI’s first in-house chip, a $16.7 billion Meta settlement, and the end of Amazon Mechanical Turk.
AI
NVIDIA reports record Q2 revenue of $96.2B
NVIDIA reported $96.2 billion in revenue for the second quarter of fiscal 2027, up 106 percent year over year. Data center revenue was $89.0 billion, up 117 percent. Gross margin held at 75.0 percent.
Guidance for Q3 is $108 billion, plus or minus 2 percent. The CFO projected AI infrastructure investment reaching $3–4 trillion by the end of the decade. (NVIDIA earnings)
OpenAI unveils Jalapeno, its own inference chip
OpenAI announced Jalapeno on 25 August, its first in-house chip, co-developed with Broadcom. It is inference-only and cannot be used for training.
In OpenAI’s own benchmarks, Jalapeno delivered 1.5–1.9x the AI throughput per watt of NVIDIA Blackwell and 1.7–3.6x lower end-to-end latency. Volume production is targeted at small quantities in late 2026, and it has not yet been compared against NVIDIA’s next-generation Vera Rubin platform. (CNBC, SemiAnalysis)
NVIDIA in talks to acquire Hugging Face
Per Bloomberg and The Information, NVIDIA has reached a deal to acquire the open-source AI model platform Hugging Face for roughly $12.9 billion — about triple its $4.5 billion valuation from August 2023.
Business Insider reported the deal has not been signed and could still fall through. Neither company has confirmed it. (TechCrunch, CNBC)
Big Tech
Meta settles youth addiction suits for up to $16.7B
Meta agreed to pay up to $16.68 billion to settle social media addiction lawsuits brought by 29 states. Attorneys general from 52 states and territories signed the settlement.
Terms include daily usage limits for teenage users, overnight blackouts, and strengthened age verification. Meta denied the allegation that its platforms were deliberately designed to harm children. (CNBC, Forbes)
Amazon shuts down Mechanical Turk after 21 years
Amazon announced that Mechanical Turk, its crowdsourced labor platform, will shut down on 30 September 2026 — 21 years after its 2005 launch. AWS SageMaker Ground Truth and Amazon Augmented AI are being discontinued alongside it.
At its peak, more than 500,000 workers worldwide performed data labeling, transcription, and survey tasks on it. The wind-down is attributed to advances in AI models and the rise of specialized data labeling startups such as Scale AI and Mercor. A 2023 EPFL study found 33–46 percent of MTurk workers were using LLMs to complete their tasks. (CNBC, Quartz)
Open Source
LibreOffice 26.8 released
The Document Foundation released LibreOffice 26.8 on 26 August, available for Windows, macOS, and Linux in 120 languages.
The headline change is a new Paragraph Composer in Writer, which controls word spacing across a whole paragraph to produce cleaner line breaks. Also included: automatic bidirectional text detection, improved object resizing in RTL and CJK documents, and Notebookbar ribbon UI refinements. No generative AI features were added. (Phoronix, XDA)