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lolpanda | 1 year ago

I'm curious here how do they make money? i heard that they have ai consulting service. is that sufficient to run the company? i don't think any researchers i know pay for hugging face.

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max_|1 year ago

I had a similar idea for something like hugging face in 2016. (I feel so stupid I didn't execute)

My business model was that people with great models trained on proprietary data sets would buy & sell trained weights and fine tuned models for private use.

Here is an example.

No e-commerce business is going to easily publish their sales data for everyone to train so they can build a great model for optimizing recommendations of products.

Hiring an internal AI team may have 2 problems.

- It may cost too much - May not work as well - You may not have the appropriate data set or data size (DL is very data intensive).

For a small fraction of what it may cost to hire your own team. You may buy a fine tuned models or readily trained weights that you just "plug & play".

That sounds like reasonable model.

The client (e-commerce) saves money, time, is guaranteed success, and gets the bonus productivity output from AI integration.

What do you guys think? Tarpit idea?

If I owned hugging face, I would follow such a strategy.

binarymax|1 year ago

I’m not entirely sure but I suspect through their ML hosting/inference/training products and services they have working with enterprises. But I’m still baffled how they cover their AWS storage and egress fees :)

I remember seeing a post last week-ish from Julien Chaumond that they are profitable.

altdataseller|1 year ago

They sell subscriptions to their products for teams and collaboration (dont ask me why its needed tho)

lbhdc|1 year ago

I was curious as well what the business model is.

They are selling related services. Looks like data and inference offerings with per seat pricing. https://huggingface.co/pricing