Hugging Face is in early-stage acquisition talks that could value the AI infrastructure company at $13 billion or more, according to a Business Insider report. The startup operates a platform where developers and researchers share, test, and deploy open-source AI models, making it a key pillar in the AI ecosystem.
No buyer has been named and no agreement has been reached, but Hugging Face has consulted banks to evaluate bids amid rising demand for core AI infrastructure. The company last raised $235 million in 2023 at a $4.5 billion valuation, backed by Salesforce Ventures, Alphabet, GV, IBM Ventures, and others. CEO Clem Delangue recently said the company is approaching profitability and is prioritizing long-term sustainability over short-term gains.
The talks follow Hugging Face’s rejection of a $500 million offer from Nvidia in early 2024, which would have valued it at $7 billion. Delangue emphasized the company’s responsibility to its open-source community, noting that any deal must align with the platform’s mission and the trust placed in it by users.
