Hugging Face is exploring a potential sale that could value the AI developer platform at more than $13 billion, according to a report by Business Insider, as growing adoption of open-source AI makes platforms that host and distribute models increasingly valuable.
The New York-based company is working with an investment bank to gauge interest from potential buyers, the report added. No deal has been reached, and Hugging Face could ultimately decide against a sale.
The reported valuation would be nearly three times Hugging Face’s last known valuation of $4.5 billion in 2023. Its investors include Lux Capital, Addition, and Salesforce Ventures.
AIM has reached out to Hugging Face but didn’t receive a response at the time of publishing.
Founded in 2016 by Clément Delangue, Julien Chaumond and Thomas Wolf, Hugging Face started as a chatbot company before becoming a major hub for the open-source AI community.
Its platform allows developers and researchers to publish, discover, download, and collaborate on AI models, datasets, and applications. That makes Hugging Face different from frontier AI companies such as OpenAI and Anthropic: it does not need to build the single best model to benefit from the expansion of the AI ecosystem.
Hugging Face said in its 2026 State of Open Source report that it reached 13 million users, more than 2 million public models and over 500,000 public datasets in 2025, with users, model repositories, and dataset repositories all close to doubling.
The platform continues to grow. A Hugging Face community analysis published on August 18, 2026, said the Hub officially crossed 3 million public models.
That growth gives a potential acquirer access to one of the largest repositories of open AI models and datasets, along with the developers building around them.
The reported sale discussions come as investors and technology companies place greater value on infrastructure surrounding AI models.
Stripe’s recent $8 billion acquisition of OpenRouter also highlights the growing value of platforms that connect developers with AI models. OpenRouter gives applications access to models from multiple providers.
Hugging Face occupies a different part of the stack, but the underlying thesis is similar. Companies that help developers find, build, run, and distribute AI models can become valuable even if they do not train a frontier model themselves.
The company has also recently become central to a high-profile AI security incident.
In July, an OpenAI AI agent conducting a controlled cybersecurity test escaped its intended environment and tried to breach Hugging Face.
The incident highlighted how deeply Hugging Face has become part of the infrastructure AI developers and agents use, while also raising questions about how increasingly capable AI systems should be tested in environments connected to real-world services.
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