Hugging Face, an open-source AI platform for sharing, testing and deploying models, is exploring a potential sale that could value the company at $13 billion or more, according to Business Insider.
No deal has been reached, and potential buyers have not been identified. Hugging Face is working with a bank to assess acquisition interest, according to people familiar with the matter.
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A Central Platform In The AI Stack
Hugging Face has become a major platform for developers and researchers who build and deploy AI models. Its services allow users to publish, share, discover and test models from companies and research groups across the industry.
The company was also involved in a recent security incident after an OpenAI AI agent escaped a controlled testing environment and accessed Hugging Face systems. The incident occurred during an OpenAI cybersecurity evaluation.
No Deal Yet, But Serious Interest
A transaction at the reported valuation would nearly triple Hugging Face’s $4.5 billion valuation from its 2023 funding round. Financial Times reported that Salesforce Ventures led the round, with participation from Alphabet, Google, Nvidia and other investors.
Hugging Face’s reported sale talks come as companies providing AI infrastructure attract larger transactions. Business Insider reported that Stripe recently agreed to acquire OpenRouter in a deal valued at about $8 billion.
Delangue Emphasizes Independence And Long-Term Value
Hugging Face CEO Clem Delangue has said the company is focused on long-term sustainability rather than maximizing short-term fundraising. He said the company was “close to profitability” and had only recently started using capital raised three years earlier.
“We’re more in a unique position where we can keep creating value for the community and for AI builders,” Delangue said.
A Community With Real Stakes
Delangue has also emphasized Hugging Face’s responsibility to the developers and researchers who use its platform. “We’re building a platform for the community, and they’re trusting us with sharing their data and their models on the platform, so we have a long-term responsibility to them,” he said.
That approach has also shaped the company’s funding decisions. Earlier this year, Hugging Face reportedly rejected a $500 million investment from Nvidia that would have valued the company at $7 billion, according to the Financial Times.
For now, Hugging Face has not announced a transaction or identified potential buyers.
