U.S. Business Insider reported on August 24 that Hugging Face, the world’s largest AI open-source community based in New York and founded in 2016, is considering a full sale with potential valuation of at least $13 billion. The company is working with a bank to assess buyer interest but no deal has been finalized yet. Hugging Face hosts nearly 3 million public AI models and over 1 million datasets, generating revenue from subscriptions, enterprise hosting, and computing services. It is often referred to as the GitHub of the AI industry as it facilitates model discovery, sharing, and deployment. While it does not compete with companies like OpenAI in model development, it provides the infrastructure connecting developers, models, and computing resources. If the sale goes through, its valuation would nearly double from $4.5 billion in its 2023 financing round. The move reflects growing investor interest in AI model infrastructure and distribution platforms, as seen in Stripe’s $8 billion acquisition of OpenRouter last year. Hugging Face recently expanded by acquiring French humanoid robotics firm Pollen Robotics in April 2025, but it also faces challenges including industry bubbles and AI safety concerns. The company’s founder previously warned of a potential large language model bubble breaking in 2026, and an OpenAI AI agent was found to have infiltrated Hugging Face’s system in July. A successful sale would mark another shift in the AI industry’s focus from models to developer ecosystems and infrastructure.