Paid compute, storage and subscriptions for its AI model hub drove a rapid increase in income for the developer platform. Annualized revenue rose 50% to more than $150 million in two months, The Information reports. The growth reflects a strategy to monetize the hub’s user base by converting demand for open-source models into steady infrastructure revenue.
Hugging Face has worked with a bank to gauge acquisition interest in a deal that could value the company at $13 billion or more, according to Business Insider. While no agreement has been reached, such a sale would represent nearly a 3x jump from the startup's $4.5 billion valuation in 2023. The exploration comes after Stripe's reported $8 billion acquisition of AI model marketplace OpenRouter.