Hugging Face, a leading platform enabling developers to share and run open-source AI models, has recently achieved $150 million in annual recurring revenue (ARR) as reported by The Information.
The company experienced remarkable growth, increasing ARRs from $100 million in just two months amid rising demand for its services.
This growth, combined with its trajectory toward profitability, has attracted significant acquisition interest.
Nvidia is reportedly close to finalizing a $12.9 billion acquisition of the company, which demonstrates a massive valuation jump from Hugging Face’s previous $4.5 billion valuation during its 2023 funding round.
This move could fortify Nvidia’s position in the AI hardware and open-source model markets.
Hugging Face helps developers distribute and utilize models on rented computing power, aligning with Nvidia’s strategies, especially as it competes with other closed-source AI platforms developing in-house chips.
The acquisition could also help Nvidia better manage its cloud capacity commitments by accessing Hugging Face’s user base.