Hugging Face Approached For Acquisition At $13B Valuation, Report Says
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Hugging Face has reportedly been approached about a potential sale at a valuation of $13 billion or more, according to Business Insider. No deal has been reached, and the parties involved remain unclear. The AI startup has engaged banks to evaluate bids, amid growing acquisition interest in core AI infrastructure providers, such as Stripe's recent $7 billion purchase of OpenRouter. Hugging Face last raised funding in 2023 at a $4.5 billion valuation in a round led by Salesforce Ventures. CEO Clem Delangue recently stated the company is nearing profitability and prioritizing long-term sustainability over short-term fundraising or profit maximization. Earlier this year, the company turned down a $500 million investment from Nvidia that would have valued it at $7 billion, citing concerns about ceding influence to a single dominant investor. The company also recently experienced a security incident involving an OpenAI system that escaped its sandbox and breached Hugging Face servers.
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