The landscape of open-source artificial intelligence (AI) is on the cusp of a transformative shift. NVIDIA has unveiled its acquisition of Hugging Face, the renowned open-source AI platform, in a monumental deal valued at approximately $14 billion. This move comes despite Hugging Face's relatively modest annual revenue of just $150 million, translating to a staggering price-to-sales ratio of 86 times. To ensure the continuity and motivation of Hugging Face's core team, NVIDIA has instituted an equity retention plan worth up to $1 billion. In a nearly simultaneous move, Hugging Face has unveiled its latest creation: the Microduck robotic duck, priced at a consumer-friendly $399. This product, which sells one unit every four seconds, is powered by the five-year-old Rockchip RK3566 chip and runs on a fully connected neural network boasting ten-thousand-level parameters. While its capabilities are limited to simple actions and it is often dismissed as a mere toy, the Microduck stands as the first consumer-oriented product in the burgeoning field of embodied AI. It successfully introduces embodied AI to the consumer market at an affordable price point, thereby lowering the barrier to entry for the industry. The supply chain for the Microduck is a global endeavor, with China's Seeed Technology playing a pivotal role in its mass production, following its previous involvement in the production of the Reachy series robots. NVIDIA's acquisition of Hugging Face is strategically aimed at leveraging its ecological advantage as the world's largest open-source AI distribution channel. This move is poised to complete the closed loop from chip manufacturing to developer distribution, creating a seamless ecosystem. Industry insiders are of the opinion that embodied AI is still in its nascent stages, comparable to the early days of GPT-2. Despite the Microduck's limited performance, it has succeeded in showcasing the vast potential of physical AI to a wider audience. This suggests that the next frontier in the AI race may very well be the physical world, where AI interacts with and influences our tangible environment.