Most likely, because it is less money :-p. But also because it is less known and harder, as you already mentioned. Personally, I'm based in Mexico, and I would never have thought about trying to get nonprofit funding for a community project, nor would I know where to start to get that.
To summarize, they rejected Nvidia's offer because they didn't want one outsized investor who could sway decisions. And "the company was also able to turn down Nvidia due to its stable finances. Hugging Face operates a 'freemium' business model. Three per cent of customers, usually large corporations, pay for additional features such as more storage space and the ability to set up private repositories."
Yes, it is not a black or white thing, more a spectrum. But for many people, including me, just naming the categories is very clarifying, even eye opening, akin to beginning to know an alien civilization. It allows you to consider a different point of view, a way of interacting, taking decisions and actions very different to what you are used to.
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