OpenAI Competitor Hugging Face Reports Higher Demand After Sam Altman Mess

AI firm Hugging Face reported an increased interest from potential clients in the company following the leadership changes in rival OpenAI.

OpenAI Competitor Hugging Face Reports Higher Demand After Sam Altman Mess
(Photo : Hugging Face)

Hugging Face CEO Clément Delangue said the sudden surge in other AI startups is the companies "wondering about the risk of outsourcing their AI to just one AI provider."

The tech firm recently posted its internal mission, vision, and values to X (formerly Twitter) in time for the rising interest in the company that is "big on transparency and love all things open."

Many companies and big clients have been considering switching from OpenAI to its top competitors following OpenAI CEO Sam Altman was fired and eventually reinstated.

Also Read: OpenAI Welcomes Back Ousted Sam Altman as CEO

Other AI Firms Getting Traction from the OpenAI Fallout

Hugging Face is not the only AI startup that has seen increased attention from possible clients since the fallout in OpenAI.

CNBC reported that Cohere, a Toronto-based large language model, received more inquiries from prospective customers in the past weeks. The company is valued at $2 billion.

Anthropic, which was founded by former OpenAI employees, earlier reported an uptick of at least 100 customers reaching out to the company for its services.

Cohere spokesperson Josh Gartner said the sudden shift of interest is the companies aiming for "outstanding, reliable business solutions, not soap operas."

It can be remembered that Altman's firing caused a stir within the AI industry, forcing investors and parent company Microsoft to intervene in the ensuing chaos.

Many issues with the company's board were aired to the public in the employees' X posts.

Related Article: Concerns Over New Advanced AI Were Raised Before OpenAI CEO Sam Altman was Fired

What is Hugging Face

Founded in 2016, Hugging Face is a French-American open-source data science and machine learning platform based in New York. Similar to GitHub, it acts as an information and code center for AI experts and enthusiasts.

Hugging Face currently hosts AI models, trains large language models, and collaborates with AI groups to solve tech problems.

Meta recently partnered with Hugging Face "to accelerate the adoption of open-source artificial intelligence solutions" within the French tech industry.

Hugging Face is currently valued at $2 billion from its machine learning hub services.

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