#AIstartup CEO sees increase in companies for sale. #Acquisitions

Hugging Face’s CEO, Clément Delangue, has observed a growing trend of AI startup founders looking to sell their companies, hinting at potential market consolidation. Hugging Face recently acquired Argilla for $10 million, its fourth acquisition so far. Delangue mentioned that approximately 10 AI startups per week express interest in being acquired, with a notable increase this year. Hugging Face, known for developing and hosting AI software, has significant resources after securing $235 million in funding last year, resulting in a $4.5 billion valuation. The company not only receives acquisition requests but also actively seeks deals, as seen in their collaboration with Argilla, a company specializing in software for improving AI training datasets. Following the acquisition, Argilla’s 13 employees will join Hugging Face while continuing to operate independently under the Argilla name. This move signifies Hugging Face’s strategic expansion and consolidation within the AI startup market.

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