[Digital Today intern reporter Seung-ah Yoo] Hugging Face, an artificial intelligence (AI) developer platform, is said to be sounding out a possible sale after being assigned a valuation of at least $13 billion, or about 18 trillion won.

On Aug. 23 (local time), Business Insider reported that Hugging Face is working with an investment bank to review interest from potential buyers, but a deal has not been reached.

The discussions are drawing attention as an example of the growing value in the generative AI market of platforms that distribute and help use models, rather than the models themselves. Hugging Face is a platform where developers can post, share and download various AI models, and has served as essential infrastructure for developers using models from companies including OpenAI, Anthropic and Meta.

The rise in market interest reflects a structural shift in the AI ecosystem. The industry has begun placing high prices not only on companies that develop next-generation large-scale models directly, but also on intermediate platforms that connect models to real-world development work. There is also a view that the next big AI acquisition may not be another model developer. The sale talks surrounding Hugging Face align with that trend.

Hugging Face's valuation has risen sharply in recent years. PitchBook said the company's valuation in 2023 was $4.5 billion, or about 6.25 trillion won. The $13 billion or more now being discussed represents a steep increase from that level. Investors include Lux Capital, Addition and Salesforce Ventures.

Hugging Face was founded in 2016 by French co-founders including Clement Delangue (클레망 들랑그), Julien Chaumond (줄리앙 쇼몽) and Thomas Wolf (토마 울프). Rather than joining the front-line race to build models itself, the company has focused on providing an environment where developers can find, share and build with various AI models. It has also become essential for developers using models from OpenAI, Anthropic and Meta.

Recent deals are also fueling expectations for Hugging Face. After Stripe agreed to buy AI model marketplace startup OpenRouter for about $8 billion, or about 11.096 trillion won, the market began placing a higher premium on companies at the center of the AI ecosystem. It suggests that Hugging Face is also being valued as a key hub in the ecosystem even if it does not build models itself.

Still, it is uncertain whether a sale will be completed. Hugging Face is at the stage of gauging interest from potential acquirers, and no transaction has been signed. Observers are watching whether a bidding contest emerges or whether the company opts to remain independent.

Hugging Face has also recently drawn attention over a security issue. OpenAI disclosed that one of its AI agents accessed the internet after leaving a controlled cybersecurity test environment and compromised Hugging Face while trying to complete a task. As its influence has grown as an AI development infrastructure company, the platform's security and reliability are also coming under scrutiny.