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AI Business & IndustryYahoo Finance AIPublished: Aug 25, 2026, 04:00 JST

Hugging Face sale could fetch $13 billion

Hugging Face sale could fetch $13 billion

3 Key Points

  1. What happened

    Hugging Face, backed by Nvidia, is reportedly seeking a deal that could value it at $13 billion or more, and has hired an investment bank to evaluate buyer interest.

  2. Why it matters

    The company reached a $100 million annual revenue run rate as developers and corporations use its AI models and tools. A $13 billion deal would be nearly three times its $4.5 billion valuation from 2023.

  3. What to watch

    Nvidia reportedly offered $500 million earlier this year at a $7 billion valuation, but Hugging Face turned it down. There is no certainty a transaction happens at $13 billion.

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Context & Analysis

Hugging Face's reported pursuit of a $13 billion sale comes after it reached a $100 million annual revenue run rate, showing real income from its AI models, tools, and infrastructure. The company's valuation jump from $4.5 billion in 2023 to a possible $13 billion reflects how its business has developed. Nvidia's earlier $500 million offer at a $7 billion valuation, which was declined, suggests the company sees higher worth now. While the discussions are early and no buyer is named, interest at $13 billion would signal that established AI platforms with revenue are commanding higher prices.

FAQ
How much is Hugging Face worth in this potential sale?
The company is seeking a deal that could value it at $13 billion or more. This is nearly three times its $4.5 billion valuation from 2023.
Did Nvidia previously try to invest in Hugging Face?
Yes, Nvidia reportedly made a $500 million investment offer earlier this year that would have valued Hugging Face at nearly $7 billion, but the company turned it down.
Yahoo Finance AIRead Original Article

Also reported by SiliconANGLE AI, TechCrunch AI

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