Clement Delang, CEO of Hugging Face, stated: “I believe many companies and institutions are now somewhat questioning the risks of relying on a single AI provider, and it is evident that this poses risks to the system’s overall failure, so they are looking for diverse solutions.”
Developers are turning to the Hugging Face platform to deploy code for artificial intelligent models.
Hugging Face isn’t the high-value startup in this field that made this observation just 11 days after the removal of Sam Altman as CEO of OpenAI, which quickly reinstated him after the controversy that erupted among employees and investors.
According to spokesperson Josh Gartner, the large-scale language models company Cohere seeking growth has seen an increase in inquiries from potential customers.
Cohere is valued at over $2 billion, and Gartner told CNBC: “Companies are looking for an excellent and reliable business solution, not the drama.”
Many companies have indicated their intention to move away from OpenAI in favor of competitors’ services as confusion within the company escalates.
Last week, senior executives at Cohere sent a memo to investors informing them that the company’s mission and strategy would be fully disclosed by the leadership team. However, the message did not mention OpenAI by name but referred to “events that occurred with one of our competitors over the weekend.”
OpenAI stands out with its unique structure, where the parent organization is a non-profit entity, with a for-profit company operating under this umbrella, overseen by the board of the non-profit and activities of Altman’s team and the rest of the company.
The executive managers at Cohere explained how they manage the company, stating: “Cohere’s board is composed of highly experienced external members with significant stakes in the company, in addition to the founder’s control over the board.”
They believe that companies need a robust and reliable linguistic model, given the challenges facing OpenAI.
Hugging Face raised $235 million in funding in August, with a valuation of $4.5 billion. Investors include companies like Google, Amazon, NVIDIA, Intel, Qualcomm, Salesforce, AMD, and IBM.
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