Nvidia-Backed Hugging Face Could Fetch $13 Billion in a Sale

M&A · Partnership
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Nvidia-backed Hugging Face is reportedly seeking a deal that could value the AI business at $13 billion or more. The company has recruited an investment bank to evaluate buyer interest, according to Business Insider, though discussions are in their infancy and no prospective purchaser has been named publicly. Hugging Face was worth $4.5 billion in its 2023 fundraising round, so a $13 billion acquisition would value the company at nearly three times that level. The company recently reached a $100 million annual revenue run rate as developers and corporations increasingly employ its AI models, tools, and infrastructure. Hugging Face already has backing from some of tech's biggest names, including Nvidia, Amazon, Alphabet, and Salesforce, and earlier this year reportedly turned down a $500 million investment offer from Nvidia that would have valued it at nearly $7 billion.

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Hugging Face is reportedly seeking a sale that could value it at $13 billion or more, nearly triple its last valuation.

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