Hugging Face reportedly in talks to be acquired for $13B
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Hugging Face, a startup known for its open-source AI model platform, is reportedly in talks to be acquired at a valuation of $13 billion or more, according to Business Insider. The company has been approached by potential buyers and is working with banks to evaluate bids, though no deal has been reached and the suitors are unidentified. This comes amid a surge of interest in core AI infrastructure companies, highlighted by Stripe's $7 billion acquisition of OpenRouter. Hugging Face last raised money in 2023 at a $4.5 billion valuation, and its CEO recently stated the company is near profitability and focused on long-term sustainability over short-term gains. The report also notes that earlier this year, Hugging Face turned down a $500 million investment from Nvidia that would have valued it at $7 billion. The article questions whether the company is truly selling or just fielding offers, given CEO Clem Delangue's emphasis on responsibility to its community. Additionally, a recent OpenAI security test incident breached the startup's servers.
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