Hugging Face stock is a hot topic among investors looking for artificial intelligence (AI) companies. It's a platform where developers can collaborate on AI code, models, datasets, and applications. Hugging Face is also open-source, meaning it's available to anyone and everyone.
Since launching in 2016, Hugging Face has grown quickly. It passed 5 million users in 2024, has more than 1.7 million AI models, and has received investments from many of the top tech companies. In this guide, we'll cover whether you can invest in Hugging Face stock and go into more detail on this AI company.
Is it publicly traded?
Is Hugging Face publicly traded?
No, Hugging Face isn't currently publicly traded on the stock market. It's a private company, so you can't invest in it through a brokerage account.
Will it IPO?
When will Hugging Face IPO?
Hugging Face hasn't announced an initial public offering (IPO). It's unlikely that Hugging Face will join the list of IPO stocks in the near future since it's still a young company that recently completed several funding rounds.
Artificial Intelligence
How to invest
How to buy Hugging Face stock
While you can't invest in Hugging Face directly, there's still the indirect approach. You could invest in AI companies that have invested in Hugging Face. Here are three technology companies that fit the bill.
Alphabet
Alphabet (GOOG 1.26%)(GOOGL 1.2%), the holding company that owns Google, invested in Hugging Face's Series D funding round in 2023, where the AI startup raised $235 million in total. Alphabet also formed a strategic partnership with Hugging Face in January 2024. The partnership allows developers to use Google's cloud infrastructure for all Hugging Face services and enables training and serving of Hugging Face models on Google Cloud.
Amazon
Amazon (AMZN 2.49%) may be known for its e-commerce business and cloud services, but it has also been investing in and incorporating AI into its services. It was part of Hugging Face's Series D funding round, and it's collaborating with Hugging Face for generative AI applications on Amazon Web Services (AWS).
Nvidia
Nvidia (NVDA 0.96%) has arguably been the most successful AI company to date. It has even become the largest company by market cap multiple times, based largely on the success of its graphics processing units (GPUs). Like the previous two companies, Nvidia invested in Hugging Face's Series D funding round and has partnered with it. In August 2023, the businesses agreed to integrate the Nvidia DGX Cloud into the Hugging Face platform, which will help speed up the training of large language models (LLMs).
How to invest
Here's how to invest in stocks in those companies and any other publicly traded companies that you want to add to your portfolio.
- Open your brokerage app: Log into your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Profitability
Is Hugging Face profitable?
Clement Delangue, co-founder and CEO of Hugging Face, said that the company is profitable in a 2024 post on X. Since Hugging Face is a private company, it doesn't need to share its financial information publicly. It hasn't disclosed its balance sheet, so revenue and net income numbers aren't available, although Forbes has reported Hugging Face's annual revenue at between $30 million and $50 million.
Should I invest?
Should I invest in Hugging Face?
Even though you can't buy Hugging Face stock, you should strongly consider investing in companies that have partnered with it or that are positioning themselves at the forefront of AI development and machine learning.
Machine Learning
AI has the potential to be a transformative technology, and its economic impact could be staggering. The market value of AI is expected to grow from an estimated $189 billion in 2023 to $4.8 trillion in 2033, a 25-fold increase, according to UN Trade and Development's Technology and Innovation Report 2025. It's also projected to affect as many as 40% of global jobs.
For most investors, it makes sense to have some exposure to that market. Now, the tech sector is more volatile than the stock market as a whole, and not everyone believes AI, in particular, will live up to the hype. But when you invest in the companies that have backed Hugging Face, you avoid the risk that comes from investing in an AI startup. Even if their AI projects don't meet expectations, Alphabet, Amazon, and Nvidia are still established, quality tech companies.
ETFs
ETFs with exposure to Hugging Face
If you're looking for more diversification in your portfolio, you can invest in exchange-traded funds (ETFs) with exposure to companies partnered with Hugging Face. Here are some of the top tech ETFs:
- Vanguard Information Technology ETF (VGT 0.92%) holds stocks of companies in the electronics and computer industries. It charges a 0.09% expense ratio, or $9 in annual fees for every $1,000 invested.
- Invesco QQQ Trust (QQQ 0.92%) tracks the Nasdaq-100 index, which consists of the 100 largest non-financial companies listed on the Nasdaq. It charges a 0.20% expense ratio.
- The Technology Select Sector SPDR Fund (XLK 0.74%) aims to track the technology sector of the S&P 500 index. It charges a 0.08% expense ratio.
- Fidelity MSCI Information Technology Index ETF (FTEC 0.91%) aims to represent the performance of the information technology sector in the U.S. stock market. It charges a 0.084% expense ratio.
Related investing topics
The bottom line on Hugging Face
Investing in AI startups like Hugging Face sounds exciting, and there's certainly the possibility of huge profits. But it's not an option for retail investors, who need to stick to publicly traded companies.
This isn't necessarily a bad thing. Hugging Face seems to be doing well so far, but evaluating it as an investment is next to impossible without financial information. And even promising private companies tend to be on the risky side.
There are still plenty of ways to get AI exposure in your portfolio, and you can always buy shares in the companies that have funded Hugging Face if you're bullish about it. Until Hugging Face announces an IPO, that's the closest you can get to Hugging Face stock.
FAQ
Investing in Hugging Face FAQ
Can I invest in Hugging Face?
No, you can't invest in Hugging Face, because it's a private company. You could get some indirect exposure to it by buying shares in companies that have invested in Hugging Face, such as Alphabet, Amazon, and Nvidia.
Is Hugging Face publicly traded?
No, Hugging Face isn't publicly traded. It's privately held and hasn't announced plans for an IPO.
What is the best AI stock to invest in?
Some of the best AI stocks include Nvidia, Microsoft, Alphabet, and Meta Platforms. All of these tech companies have invested heavily in AI.
Is Hugging Face profitable?
Hugging Face is profitable, according to co-founder and CEO Clement Delangue. Exact numbers aren't publicly available, because as a private company, Hugging Face doesn't need to provide financial information.
