Hugging Face, the AI model platform, is reportedly in talks to be acquired for $13 billion, according to Business Insider. The startup's platform and open source community allow developers and researchers to share, find, test, and deploy AI models. The company has been approached for a valuation of $13 billion or more, with discussions ongoing but no deal yet reached. Hugging Face has reportedly been consulting with banks to evaluate potential bids, reflecting heightened interest in AI infrastructure providers.
The talks come amid increased interest in companies providing core AI infrastructure services, as seen in Stripe’s $7 billion acquisition of OpenRouter. Hugging Face last raised funds in 2023 at a $4.5 billion post-money valuation, led by Salesforce Ventures and including participation from Alphabet, GV, IBM Ventures, and others. The company has also turned down a $500 million investment from Nvidia, which would have valued it at $7 billion, citing concerns about a single dominant investor influencing decisions.
Hugging Face CEO Clem Delangue mentioned the company is “close to profitability” and has only recently started to use the money raised three years ago. He emphasized the startup’s focus on “long-term sustainability of the company rather than short-term profits or fundraising maximization.” Delangue also highlighted the company’s responsibility to the Hugging Face community, noting that users trust the platform with their data and models. The company’s stance on maintaining independence raises questions about whether it is genuinely considering a sale or simply exploring offers for its role in AI infrastructure.
Source: techcrunch
