May 29, 2024
AI Platform Hugging Face Secures Staggering $395.2 Million in Funding, Backed by Tech Giants

AI Platform Hugging Face Secures Staggering $395.2 Million in Funding, Backed by Tech Giants

Hugging Face, an AI firm has acquired a staggering $235 million in its Series D fundraising round, serving as a substantial validation of the growing interest in artificial intelligence (AI) and the platforms that support its development. The tech sector is abuzz over the news, which The Information first reported and later verified by Marc Benioff, CEO of Salesforce, on Twitter.

Hugging Face’s most recent investment round, which included participation from numerous major giants including Google, Amazon, Nvidia, Intel, and others, increasing the amount of money raised to $395.2 million. The company is now valued at an incredible $4.5 billion, a remarkable gain since May 2022. Hugging Face’s annualized revenue is noticeably greater than this price by over a hundred times.

Hugging Face’s funding places it among notable AI businesses like OpenAI, which has raised $11.3 billion. Coming close behind are Cohere, Anthropic, Inflection AI, and Adept.

“AI is the new way of building all software. It’s the most important paradigm shift of the decade, and, compared to the software shift, it’s going to be bigger because of new capabilities and faster because software paved the way, Hugging Face intends to be the open platform that empowers this paradigm shift.” Co-founder and CEO Clément Delangue told TechCrunch.

Hugging Face, a Brooklyn-based start-up founded in 2016 by French businessmen Delangue, Julien Chaumond, and Thomas Wolf, was first envisioned as a chatbot for teenagers. However, after they made the app’s algorithm open-source, the group’s idea changed to become a platform specifically designed for AI applications. As a GitHub for AI, the company now offers a variety of data science tools where developers can discover code repositories, datasets, and AI models.

Hugging Face has established itself as a leader in the AI industry, serving more than 10,000 clients from 50,000 enterprises. They claim that their model hub has over a million repositories. According to a HubSpot survey, 43% of business leaders plan to increase their AI investments in 2023, further demonstrating the growing industry interest in AI.

The benefits of Hugging Face go beyond MLOps, a set of tools necessary for transferring AI models from development to production. They unveiled BigScience in 2021 with the intention of providing an open-source alternative to OpenAI’s GPT-3. This linguistic model, called Bloom, has gained much popularity on Hugging Face’s site.

The startup has partnerships with numerous significant figures in the tech sector. Hugging Face is making every effort, from collaborating with Nvidia to guarantee more incredible cloud computing availability to forming partnerships with Amazon and Microsoft for product extensions.

Delangue’s future goals are big ones. Hugging Face, which currently has 170 employees, plans to expand its entrance into multiple industries, stepping up its efforts while also looking to increase its workforce in the upcoming months.

Image: Freepik

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