What was it?
But a month or so ago, they were sat in San Francisco, and you're like, this is happening. This M&A is real.
And I'm getting a lot of calls offering to sell.
That's start-up to me. But you went out and found this one yourself. Yes.
And I think it's just the beginning.
I think we're going to start to see much, maybe more acquisitions in the next few months. This acquisition is a good example.
I realize a fantastic team based out of Spain working on the tremendously important topic data sets and data for Asia.
Their name like means clay in Spanish.
That's a good image for what data sets and data are in the I.
They kind of like the foundation and the soil that allows machine learning and AI to grow. So we're super excited about this.
And I feel like this is just the beginning for, I mean, for Facebook, for the Philadelphia Journal, too.

Okay.
So when you look at a $10 million deal, that I think the team is going to remain
intact, and they're almost going to continue to operate as they have been,
how else would you want M&A to happen for hugging face when you do such sort
of standalone deals? Will they get bigger?
Maybe. I think it all depends on the talents, on the opportunities. As I was sharing with one of your other
reporters, the volume of acquisition opportunities really skyrocketed in the
past few months just taking place alone. I realize that we receiving over ten
acquisition opportunities a week these days.
It's expressing interest. How are you getting it?
Emails? Yeah, emails mostly.
Or like connecting with me on unsocial social media.
Definitely increased. So it's really interesting to see.
I think there is this natural tendency of like concentration in the eye.
And some companies like cooking face or

others becoming some sort of magnets.
Right. Because of the visibility that we have,
the talent that we have, the compute that that we have.
And for all these startups that are good teams that have maybe early traction, but
might not attract the level of funding that is required for.
Yeah. Yeah.
There's going to get rid of opportunities for them to join
other teams, which is an interesting trend because you've raised
hundreds of millions and there's Google, Amazon, and video, all the who's
who of corporate VCs invested in your previous round.
So you've got the cash to be able to make these acquisitions.
You've got the compute power. Is there any theme of where these
companies that are currently wanted to sell themselves are coming from?
Is it geographical or is it within the stack layer?
Like where is what are the problems they're trying to solve?
So I think a lot of it is a parallel to

the concentration of DC Bets in a way.
I think right now we are taking heavy, heavy bets on a couple of like very hot
topics like, for example, large language models, which you've seen maybe the
fundraising of Mistral out of France a couple of a couple of days ago.
And so when the startups are working on topics that are a little bit less hyped
or leaky, like, for example, here it's datasets.
It's like a different, different picture.
It's a different life. It's like, you know, I won't quit.
I like quitting Rocky Balboa. The world ain't all like sunshine and
rainbows for start-ups that are working on, like, less sexy topics.
Yeah. And so we see a lot of opportunities in
there. And it's super exciting because, for
example, here for Aguilar, working on datasets on data, which in my opinion
now is becoming like the bottleneck

like the most important.
So for, for yeah, right. Because better data allows companies to
take three days, for example, and then fine-tune it and get better results for
their use case the day before. So these are the two things that are not
that hype are super interesting.

Hugging Face CEO on M&A in AI, Argilla Acquisition

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