A new fundraising round for Hugging Face is projected to value the thriving AI company at $4 billion, according to numerous sources with knowledge of the situation.
According to two sources, the Series D investment round should bring in at least $200 million, with Ashton Kutcher’s venture capital firm, Sound Ventures, presently in charge of the investor scrum. However, co-founder and CEO Clément Delangue is looking around as the business has received several proposals this week, according to four additional sources.
Another source stated that Delangue would likely select a preferred offer by Friday but cautioned that the situation was still in flux and that the specific figures might change.
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Other sources claimed that Hugging Face might try to raise additional funds, up to $300 million, while current investors might yet make a last-minute offer to acquire the round. One source also mentioned that DFJ and GV, the venture capital group funded by Alphabet, were reportedly considering the financing.
Hugging Face raised $100 million in a Series C investment headed by Lux Capital a little more than a year ago. Coatue and Sequoia were new investors in that round and joined A.Capital Ventures and Addition. The company had reached a $2 billion valuation in that round despite having lessthan $10 million in revenue in 2021.
