
Hugging Face could be sold for $13 billion or more.
It reached $100 million in annual revenue.
Nvidia earlier offered $500 million at a $7 billion valuation.
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.
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.
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.
Ask the AI about this article →
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.
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