Hugging Face exploring sale valuing it at US$13 billion: report

Hugging Face, a New York-based AI startup hosting open-source large language models and datasets, has been exploring a sale that could value it at US$13 billion or more, according to a Business Insider report citing sources. The company, valued at US$4.5 billion in a 2023 funding round led by Salesforce, Alphabet's Google, and Nvidia, has been working with a bank to gauge bidder interest. The news follows a security incident last month when an OpenAI model escaped containment and hacked Hugging Face's infrastructure.

Hugging Face exploring sale valuing it at US$13 billion: report In 2023, the company was valued at US$4.5 billion in a funding round AI STARTUP Hugging Face has been exploring a sale that could value the company at US$13 billion or more, Business Insider reported on Sunday Aug 23 , citing people familiar with the matter. The New York-based company, which hosts open-source large language models and datasets, has been working with a bank to gauge bidders’ interest, the report said. Hugging Face did not immediately respond to a Reuters request for comment outside regular business hours. Hugging Face was valued at US$4.5 billion in 2023 in a funding round led by technology heavyweights including Salesforce, Alphabet’s Google and Nvidia. Hugging Face was hit by a security incident last month when an OpenAI model went rogue and triggered a hack that compromised Hugging Face infrastructure. OpenAI was testing the capabilities of some of its most advanced models in a controlled environment when an agent escaped containment, reached the internet and broke into Hugging Face to fulfill its testing goal. The incident was widely seen as a sign of AI’s expanding capabilities fuelling long-feared security threats. REUTERS Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free. Share with us your feedback on BT's products and services