HuggingFace's Acquisition and AI Market Trends

TapTechNews June 22nd news, according to Thedecoder's report this Thursday, Clément Delangue, the CEO of the open-source AI community HuggingFace, said in an interview in the middle of this month that an increasing number of founders of AI startups hope to sell their companies, which may indicate that the AI market is about to see consolidation.

And on June 13th, HuggingFace announced the acquisition of a small company called Argilla for $10 million (TapTechNews note: currently about 72.819 million yuan), which is the fourth acquisition initiated by HuggingFace so far.

At the same time, HuggingFace has received cooperation requests from more companies. Clément Delangue said that he receives about 10 acquisition intentions from AI startups every week, and the number of intentions obtained this year has increased significantly.

HuggingFace not only hosts software for other companies but also produces AI tools. It received $235 million (currently about 1.711 billion yuan) from investors last year, enabling it to achieve a valuation of $4.5 billion (currently about 32.769 billion yuan). Just because it has a huge amount of resources, HuggingFace has become a magnet in the eyes of enterprises that are eager to be acquired.

Of course, HuggingFace is not just waiting for the initiative of other companies to contact but also takes the initiative to reach cooperation with other enterprises. According to Bloomberg, before acquiring Argilla, HuggingFace had a cooperative relationship with Argilla. And the latter is a software development company aiming to allow people to cooperate to improve the data set used for training AI to imitate human language.