Hugging Face Secures $235 Million in Series D Funding, Valuation Reaches $4.5 Billion

In a notable development in the AI industry, New York-based startup Hugging Face has raised $235 million in a Series D funding round. This places its valuation at $4.5 billion, doubling since May 2022.

Transaction Highlights:

  • Deal Value: $235 million.
  • Valuation Multiple: Hugging Face's valuation is reportedly over 100 times its annualised revenue.
  • Investors: Google, Amazon, Nvidia, Intel, AMD, Qualcomm, IBM, Salesforce, and Sound Ventures.
  • Target: Hugging Face is focused on creating, testing, and deploying machine learning models.

Hugging Face Snapshot:

  • Offerings: Hosting AI code repositories, models and datasets, web apps for AI applications, libraries for processing and evaluating models, enterprise SaaS solutions.
  • Features: AutoTrain, Inference API, and Infinity for automating and optimising model processes.
  • Customers & Community: 10,000 customers, over 50,000 organisations on the platform, hosting 1 million repositories.
  • Collaborations: Partnerships with Nvidia, Amazon, Microsoft.
  • Open Source Initiatives: BigScience, StarCoder, free version of ChatGPT.
  • Future Plans: Increase support in research, enterprise, and startups, with recruitment plans.

CEO Clément Delangue highlighted the importance of AI and Hugging Face's role. "AI is the new way of building all software. It’s a significant paradigm shift of the decade, and Hugging Face intends to be the open platform that empowers this shift,” Delangue stated.

The funding reflects a broader trend in business, with 43% of leaders planning to increase investment in AI and automation tools in 2023, according to a HubSpot poll. Hugging Face's offerings fall into the MLOps category, a market estimated to reach $16.61 billion by 2030.

Strategic Positioning for Hugging Face: This investment puts Hugging Face among well-funded AI startups. The funding will support their efforts across various domains, enhancing their position in the field. The company's continuous innovation and strategic partnerships underline their growth potential in the AI landscape.

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