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The Hugging Face website on a smartphone arranged in New York, Aug. 17, 2023.

Gabby Jones | Bloomberg | Getty Images

Hugging Face, an AI firm based in New York, has raised $235 million at a $4.5 billion valuation from some of technology’s biggest companies.

Google, Amazon, Nvidia, Salesforce, AMD, Intel, IBM and Qualcomm all contributed to the round, the company said. Hugging Face CEO Clement Delangue said the funds are to be focused on hiring talent to be competitive in the artificial intelligence space.

Startups working on AI models have reached high valuations as big companies and venture capitalists seek to plow money in the recent AI boom, which kicked off last year when Microsoft-backed OpenAI released its ChatGPT chatbot.

Hugging Face’s big valuation and crop of prominent backers reflect how a more collaborative approach to building AI has been gaining steam in recent months, especially after Facebook parent Meta released its Llama large language model, which is free to use for the vast majority of companies.

Other highly valued AI startups, like OpenAI or Cohere, work on the technology directly and guard the results as a trade secret, then charge customers to access them through application programming interfaces, or AIs.

But Hugging Face produces a platform where AI developers can share code, models, data sets, and use the company’s developer tools to get open-source artificial intelligence models running more easily. In particular, Hugging Face often hosts weights, or large files with lists of numbers, which are the heart of most modern AI models.

While Hugging Face has developed some models, like BLOOM, its primary product is its website platform, where users can upload models and their weights. It also develops a series of software tools called libraries that allow users to get models working quickly, to clean up large datasets, or to evaluate their performance. It also hosts some AI models in a web interface so end users can experiment with them.

It’s similar in theme and practice to code-repository GitHub (which Microsoft acquired in 2018), where coders from around the world post their projects while they’re working on them.

Hugging Face endorses the belief that most companies working with AI will want to develop their own models or technology, and will need tools to do so, co-founder and CEO Delangue told CNBC. He hopes that AI developers will rely on Hugging Face on a daily basis to get their work done.

One reason the big companies are investing: Their employees are actively using the platform, he said.

“AI builders are using Hugging Face all day, every day,” Delangue said. He predicted that the number of software developers working with AI models would grow in the coming years.

“Maybe in five years, you’re going to have like 100 million AI builders. And if all of them use Hugging Face all day, every day, we’ll obviously be in a good position,” he said.

Although most attention in recent weeks has been on so-called large language models like ChatGPT or Llama that focus on generating text, Hugging Face hosts any AI model, including ones that generate music or images, translate languages, or identify objects inside images. Hugging Face hosts 500,000 different AI models, 250,000 data sets, and has 10,000 paying customers, the company said.

Delangue told CNBC he had recently played with IDEFICS, which allows users to upload an image and ask questions about it. He also mentioned Seamless M4T, a translation model from Facebook, as well as Llama2, Facebook’s language model.

CNBC/Screenshot

What’s with the funny name?

Hugging Face is named after an emoji, the hugging face, a smiley face framed by two open hands.

The name and logo date back to the company’s founding. Hugging Face was originally a iPhone chatbot app, but when the company open-sourced some its machine-learning code, it realized that it was catching on with AI developers, and pivoted toward that.

“When we started the company, with my co founders Julien Chaumond and Thomas Wolf, we joked that we wanted to be the first company to go public with an emoji instead of the three letter ticker,” Delangue said.

“Maybe during this round we should start our lobbying exercise with the Nadsaq for them to allow us to use emojis on their board,” he quipped.

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How quantum could supercharge Google’s AI ambitions

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How quantum could supercharge Google’s AI ambitions

Inside a secretive set of buildings in Santa Barbara, California, scientists at Alphabet are working on one of the company’s most ambitious bets yet. They’re attempting to develop the world’s most advanced quantum computers.

“In the future, quantum and AI, they could really complement each other back and forth,” said Julian Kelly, director of hardware at Google Quantum AI.

Google has been viewed by many as late to the generative AI boom, because OpenAI broke into the mainstream first with ChatGPT in late 2022.

Late last year, Google made clear that it wouldn’t be caught on the backfoot again. The company unveiled a breakthrough quantum computing chip called Willow, which it says can solve a benchmark problem unimaginably faster than what’s possible with a classical computer, and demonstrated that adding more quantum bits to the chip reduced errors exponentially. 

“That’s a milestone for the field,” said John Preskill, director of the Caltech Institute for Quantum Information and Matter. “We’ve been wanting to see that for quite a while.”

Willow may now give Google a chance to take the lead in the next technological era. It also could be a way to turn research into a commercial opportunity, especially as AI hits a data wall. Leading AI models are running out of high-quality data to train on after already scraping much of the data on the internet.

“One of the potential applications that you can think of for a quantum computer is generating new and novel data,” said Kelly. 

He uses the example of AlphaFold, an AI model developed by Google DeepMind that helps scientists study protein structures. Its creators won the 2024 Nobel Prize in Chemistry. 

“[AlphaFold] trains on data that’s informed by quantum mechanics, but that’s actually not that common,” said Kelly. “So a thing that a quantum computer could do is generate data that AI could then be trained on in order to give it a little more information about how quantum mechanics works.” 

Kelly has said that he believes Google is only about five years away from a breakout, practical application that can only be solved on a quantum computer. But for Google to win the next big platform shift, it would have to turn a breakthrough into a business. 

Watch the video to learn more.

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Nintendo Switch 2 retail preorder to begin April 24 following tariff delays

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Nintendo Switch 2 retail preorder to begin April 24 following tariff delays

An attendee wearing a Super Mario costume uses a Nintendo Switch 2 game console while playing a video game during the Nintendo Switch 2 Experience at the ExCeL London international exhibition and convention centre in London, Britain, April 11, 2025. 

Isabel Infantes | Reuters

Nintendo on Friday announced that retail preorder for its Nintendo Switch 2 gaming system will begin on April 24 starting at $449.99.

Preorders for the hotly anticipated console were initially slated for April 9, but Nintendo delayed the date to assess the impact of the far-reaching, aggressive “reciprocal” tariffs that President Donald Trump announced earlier this month.

Most electronics companies, including Nintendo, manufacture their products in Asia. Nintendo’s Switch 1 consoles were made in China and Vietnam, Reuters reported in 2019. Trump has imposed a 145% tariff rate on China and a 10% rate on Vietnam. The latter is down from 46%, after he instituted a 90-day pause to allow for negotiations.

Nintendo said Friday that the Switch 2 will cost $449.99 in the U.S., which is the same price the company first announced on April 2.

“We apologize for the retail pre-order delay, and hope this reduces some of the uncertainty our consumers may be experiencing,” Nintendo said in a statement. “We thank our customers for their patience, and we share their excitement to experience Nintendo Switch 2 starting June 5, 2025.”

The Nintendo Switch 2 and “Mario Kart World bundle will cost $499.99, the digital version “Mario Kart World” will cost $79.99 and the digital version of “Donkey Kong Bananza” will cost $69.99, Nintendo said. All of those prices remain unchanged from the company’s initial announcement.

However, accessories for the Nintendo Switch 2 will “experience price adjustments,” the company said, and other future changes in costs are possible for “any Nintendo product.”

It will cost gamers $10 more to by the dock set, $1 more to buy the controller strap and $5 more to buy most other accessories, for instance.

WATCH: Nintendo has ‘a lot of work to do’ to convince casual users to upgrade to Switch 2: Kantan Games

Nintendo has 'a lot of work to do' to convince casual users to upgrade to Switch 2: Kantan Games

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Etsy touts ‘shopping domestically’ as Trump tariffs threaten price increases for imports

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Etsy touts 'shopping domestically' as Trump tariffs threaten price increases for imports

An employee walks past a quilt displaying Etsy Inc. signage at the company’s headquarters in the Brooklyn.

Victor J. Blue/Bloomberg via Getty Images

Etsy is trying to make it easier for shoppers to purchase products from local merchants and avoid the extra cost of imports as President Donald Trump’s sweeping tariffs raise concerns about soaring prices.

In a post to Etsy’s website on Thursday, CEO Josh Silverman said the company is “surfacing new ways for buyers to discover businesses in their countries” via shopping pages and by featuring local sellers on its website and app.

“While we continue to nurture and enable cross-border trade on Etsy, we understand that people are increasingly interested in shopping domestically,” Silverman said.

Etsy operates an online marketplace that connects buyers and sellers with mostly artisanal and handcrafted goods. The site, which had 5.6 million active sellers as of the end of December, competes with e-commerce juggernaut Amazon, as well as newer entrants that have ties to China like Temu, Shein and TikTok Shop.

By highlighting local sellers, Etsy could relieve some shoppers from having to pay higher prices induced by President Trump’s widespread tariffs on trade partners. Trump has imposed tariffs on most foreign countries, with China facing a rate of 145%, and other nations facing 10% rates after he instituted a 90-day pause to allow for negotiations. Trump also signed an executive order that will end the de minimis provision, a loophole for low-value shipments often used by online businesses, on May 2.

Temu and Shein have already announced they plan to raise prices late next week in response to the tariffs. Sellers on Amazon’s third-party marketplace, many of whom source their products from China, have said they’re considering raising prices.

Silverman said Etsy has provided guidance for its sellers to help them “run their businesses with as little disruption as possible” in the wake of tariffs and changes to the de minimis exemption.

Before Trump’s “Liberation Day” tariffs took effect, Silverman said on the company’s fourth-quarter earnings call in late February that he expects Etsy to benefit from the tariffs and de minimis restrictions because it “has much less dependence on products coming in from China.”

“We’re doing whatever work we can do to anticipate and prepare for come what may,” Silverman said at the time. “In general, though, I think Etsy will be more resilient than many of our competitors in these situations.”

Still, American shoppers may face higher prices on Etsy as U.S. businesses that source their products or components from China pass some of those costs on to consumers.

Etsy shares are down 17% this year, slightly more than the Nasdaq.

WATCH: Amazon CEO Andy Jassy says sellers will pass cost of tariffs on to consumers

Amazon CEO Andy Jassy: Sellers will pass increased tariff costs on to consumers

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