AI startup Hugging Face is reportedly fielding acquisition interest at a valuation of $13 billion or more, though no deal has been finalized.
Key facts
- •Hugging Face is reportedly in talks regarding an acquisition valued at $13 billion or more.
- •The company has reportedly engaged banks to help assess potential offers.
- •Hugging Face previously turned down a $500 million investment from Nvidia earlier this year.
- •The startup's last funding round in 2023 valued the company at $4.5 billion.
- •CEO Clem Delangue stated the company is close to profitability.
Hugging Face has been approached regarding a potential acquisition that would value the company at $13 billion or more. While the startup has reportedly engaged banks to evaluate potential bids, no formal agreement has been reached. The reports follow a period of significant interest in AI infrastructure providers.
By the numbers
Company Position and Previous Funding
Hugging Face last secured funding in 2023, reaching a post-money valuation of $4.5 billion in a round led by Salesforce Ventures with participation from Alphabet, IBM Ventures, and GV. Earlier this year, the company reportedly declined a $500 million investment from Nvidia that would have valued the startup at $7 billion, citing a desire to avoid influence from a single dominant investor.
CEO Statements on Strategy
CEO Clem Delangue recently stated that the company is nearing profitability and is prioritizing long-term sustainability over short-term fundraising. Delangue emphasized the company's responsibility to the developers and researchers who use its platform to share and deploy AI models, raising questions about whether the startup intends to pursue a sale.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by TechCrunch.
