Hugging Face's Clem Delangue on Open Source AI and the LLM Bubble | MTS Live
Episode
15 min
Read time
2 min
Topics
Remote Work, Investing, Startups
AI-Generated Summary
Key Takeaways
- ✓Open Source vs. Closed APIs: Chinese organizations including DeepSeek, Qwen, and Qimi now dominate open source AI contributions while US frontier labs retreat behind closed APIs. Most US startups and academic researchers currently rely on Chinese open source models, reversing America's historical leadership position.
- ✓LLM Bubble Risk: Overinvestment concentrates specifically in large language models distributed behind closed APIs, not AI broadly. Massive data center buildouts continue despite uncertain long-term margins and unclear competitive moats, making this segment the most vulnerable to correction in the near term.
- ✓Open Source as a Security Asset: Restricting model access creates asymmetric risk where attackers gain capabilities defenders lack. Broad open access lets defenders build protection systems in parallel with offensive tools, making the overall ecosystem more resilient than a closed model controlled by few players.
- ✓Robotics Scale Signal: Hugging Face's LeRobot shipped nearly 10,000 units globally in roughly one year, with over 300 third-party apps already built for the platform. Delangue identifies Chinese manufacturers as current robotics leaders, urging US startups to accelerate hardware development using existing frontier model strengths.
What It Covers
Hugging Face CEO Clem Delangue argues that open source AI accelerates safety rather than undermining it, while warning of an LLM API bubble and positioning robotics as AI's next major frontier.
Key Questions Answered
- •Open Source vs. Closed APIs: Chinese organizations including DeepSeek, Qwen, and Qimi now dominate open source AI contributions while US frontier labs retreat behind closed APIs. Most US startups and academic researchers currently rely on Chinese open source models, reversing America's historical leadership position.
- •LLM Bubble Risk: Overinvestment concentrates specifically in large language models distributed behind closed APIs, not AI broadly. Massive data center buildouts continue despite uncertain long-term margins and unclear competitive moats, making this segment the most vulnerable to correction in the near term.
- •Open Source as a Security Asset: Restricting model access creates asymmetric risk where attackers gain capabilities defenders lack. Broad open access lets defenders build protection systems in parallel with offensive tools, making the overall ecosystem more resilient than a closed model controlled by few players.
- •Robotics Scale Signal: Hugging Face's LeRobot shipped nearly 10,000 units globally in roughly one year, with over 300 third-party apps already built for the platform. Delangue identifies Chinese manufacturers as current robotics leaders, urging US startups to accelerate hardware development using existing frontier model strengths.
Notable Moment
Delangue reframed AI safety restrictions by comparing them to tying everyone's hands to prevent punching — arguing the solution is prosecuting bad actors, not limiting universal access to capabilities.
Episode Transcript
The idea of, like, restricting a technology like AI based on risks is just like, for example, you would say, okay. Some people can punch other people, so let's tie down everybody's hands. Right? Because it is too dangerous. Some people can punch. Right? But in reality, you don't wanna do that because your hands are so useful. The way you wanna control it is untie everyone and then regulate or fight the bad actors. So, for example, if hacking, that creates cybersecurity risks, it's illegal. Right? So you have to to fight it, but not by preventing everyone from getting these capabilities. Otherwise, you slow down progress, you create massive gaps in terms of controls, in terms of capabilities, and you create actually additional risks. This episode originally aired on MPS. Open source software built much of the modern Internet. Linux, Apache, Kubernetes, and even the transformer architecture behind ChachiPT all spread because researchers and developers could study, modify, and improve them in public. But AI is increasingly moving in the opposite direction, with the most powerful models distributed behind closed APIs controlled by a small number of companies. At the same time, China has emerged as one of the biggest contributors to open source AI, while debates around safety, regulation, and access are becoming more politically charged. And now those same tensions are extending into robotics, where AI is beginning to move off the screen and into the physical world. Theo Jaffe and Sofia Puccini speak with Clem DeLonge, CEO at Hugging Face. We are live here on MTS with Clement DeLong, who is the CEO of Hugging Face, which has been really an incredible resource for anyone who's interested in large language models and especially open weight large language models. I've been a Hugging Face user for a while now. So it's great to have you here. Clem, thanks so much for coming on MPS. Yeah. Of course. Thanks for having me. Absolutely. Okay. So you are a big proponent of open source. First of all, what how do you predict and you believe that open source is, like, a very important, you know, thing for innovation in competition. So can you compare and contrast sort of, like, the open source environments in The US and China to start? Yeah. So, I mean, historically, The US was super, super strong with open source. Right? That's kind of, like, what, what led to to the current AI revolution. Right? Like, the the t in chat GPT is actually coming from Transformer, which was open source from from Google. Unfortunately, for the past past few years, this trend has has changed, and and things tended to kind of, like, close down in in The US and kind of, like, Frontier Labs more kind of, like, sharing their models behind, like, closed source APIs. The China, so the complete opposite movement. They're the strongest, open source contributors, today. If you ask most, most startups, most academia in The US that …
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“Chinese organizations including DeepSeek, Qwen, and Qimi now dominate open source AI contributions”
“Chinese organizations including DeepSeek, Qwen, and Qimi now dominate open source AI contributions”
“Chinese organizations including DeepSeek, Qwen, and Qimi now dominate open source AI contributions”
“Hugging Face CEO Clem Delangue argues that open source AI accelerates safety rather than undermining it”
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