According to the CEO of Hugging Face, an increasing number of founders of AI startups wish to sell their firms. This may very well be an indication of impending consolidation in the substitute intelligence market.
Hugging Face, a number one AI startup, announced on Thursday that it has agreed to pay $10 million for a small company called Argilla. This is its fourth acquisition thus far. While Hugging Face approached the corporate a few merger, it’s also receiving inquiries from many other firms.
Clément Delangue, co-founder and CEO of Hugging Face, told Bloomberg News that he hears from about 10 AI startups every week which can be involved in being acquired. “This year, the number has increased particularly sharply,” he said.
Hugging Face, which makes artificial intelligence software and hosts it for other firms, may very well be a magnet for firms desirous to be acquired since it has ample resources, Delangue said. The New York-based startup has 235 million US dollars in funding from investors last yr, giving the corporate a valuation of $4.5 billion.
But the startup is not only waiting for firms to approach it. Hugging Face previously worked with Argilla, an organization that builds software that lets people collaborate to enhance the info sets used to coach AI that may mimic human speech.
The startup’s 13 employees are joining Hugging Face, said Argilla co-founder and CEO Dani Vila Suero. Argilla will proceed to operate as an independent team under the identical name.
