Nvidia's $14 billion purchase of Hugging Face looks like a defensive move to lock in demand for its chips, and it hints that too much AI computing power may have been built — a warning sign for investors betting on endless AI spending.

• Nvidia is stuck with 15-year leases on data centers it is now trying to pawn off on third parties, suggesting it has more computing power than it needs.
• Buying Hugging Face, the "GitHub of AI" that hosts thousands of models, gives Nvidia a business that actually uses that computing power.
• Nvidia can also steer developers who use Hugging Face toward its own chips and services, protecting future sales.
• The deal landed as Sam Altman warned that AI computing might be in a bubble.

Outlook: If demand for AI computing really is overbuilt, expect more deals like this as chipmakers scramble to create their own customers, and expect investors to grow more skeptical about AI spending.