The funds will be used to expand the company's 170-member team and invest in more open source AI and platform building. The company, which started as a chatbot for teenagers, now provides a platform for companies to store and use AI software. It generates revenue by charging subscription fees for its platform and for hosting services for user models. With this latest funding, Hugging Face has raised nearly $400 million to date, making it one of the best-funded AI startups globally.
Key takeaways:
- Hugging Face, an AI startup, has raised $235 million in a Series D round, bringing its valuation to $4.5 billion. The investment came from major tech companies such as Google, Amazon, Nvidia, Salesforce, AMD, Intel, and Qualcomm.
- The company's valuation has more than doubled in just over a year, having previously raised $100 million at a $2 billion valuation. The startup has now raised nearly $400 million in total, making it one of the best-funded AI startups globally.
- The new valuation gives Hugging Face a 100x multiple on its annualized recurring revenue, indicating an annual run-rate of $43.5 million. The company generates revenue by charging subscription fees for its platform and hosting services for user models.
- CEO Clement Delangue stated that the latest funding would be used to expand the company's team and invest in more open source AI and platform building. He also highlighted that the platform is heavily used by AI builders, positioning the company well for future growth.