Hugging Face in early-stage talks over potential $13 billion acquisition
The AI startup Hugging Face is reportedly evaluating acquisition offers that could value the company at about $13 billion, though its leadership emphasizes long-term sustainability and community responsibility.
Hugging Face, the developer-focused platform for sharing and deploying AI models, is said to be fielding acquisition proposals that would value the company at roughly $13 billion, according to a report from Business Insider. The startup has not confirmed any specific buyer and is working with financial advisers to assess the offers.
The interest comes as investors seek firms that provide core AI infrastructure, highlighted by recent large-scale deals such as Stripe’s $7 billion purchase of OpenRouter. Hugging Face last raised capital in 2023, securing a $4.5 billion post-money valuation in a round led by Salesforce Ventures with participation from Alphabet, GV, IBM Ventures and others.
CEO Clem Delangue told the TechCrunch Equity podcast that the company is "close to profitability" and has only recently begun to draw on the funds raised three years ago. He said the firm is focusing on "long-term sustainability of the company rather than short-term profits or fundraising maximization."
"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," Delangue added.
Earlier this year, Hugging Face declined a $500 million investment from Nvidia that would have valued the firm at $7 billion, citing concerns about a single dominant investor influencing decisions. The company has not indicated whether a sale is likely, and it has not commented further on the current talks.