Hugging Face Reaches Settlement with FriendliAI Over Patent Infringement Lawsuit in AI Innovation

Hugging Face Reaches Settlement with FriendliAI Over Patent Infringement Lawsuit in AI Innovation

Hugging Face, a leading AI developer platform, has recently settled a significant lawsuit with the Korean AI startup FriendliAI. The lawsuit revolved around allegations of patent infringement, highlighting the competitive landscape in the rapidly evolving AI sector.

Settlement Details Between Hugging Face and FriendliAI

According to a filing made on Friday in the U.S. District Court for the Northern District of Delaware, FriendliAI and Hugging Face have reached a “confidential agreement” as of January 8. The agreement stipulates that FriendliAI has agreed to dismiss its lawsuit “with prejudice,” meaning it cannot be refiled in the future.

Legal Proceedings and Dismissal

The filing states, “FriendliAI and Hugging Face hereby stipulate to dismissal… without costs and fees to any party of this case.” Furthermore, it notes that “the court shall retain jurisdiction over the parties’ settlement agreement.” As of now, Hugging Face has not provided any comments regarding the settlement.

Background of the Lawsuit

The lawsuit, initiated nearly two years ago, accused Hugging Face of violating FriendliAI’s patent related to “batching with iteration-level scheduling.” Founded in 2021, FriendliAI is a venture capital-backed company that focuses on developing infrastructure solutions for artificial intelligence, with operational offices in both Korea and Redwood City, California.

Claimed Patent Innovations

FriendliAI asserts that its patented technology, detailed in an application to the U.S. Patent and Trademark Office, enhances the data batching process for AI systems. This innovation allows systems to handle multiple requests simultaneously. Key features of the patent include:

  • Processing multiple requests in batches.
  • Sending finished requests back to users while allowing new requests to be added before the entire batch is processed.
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FriendliAI contended that Hugging Face’s “Text Generation Inference” tool utilized its patented method to efficiently batch incoming requests. In its lawsuit, FriendliAI sought:

  1. Compensatory damages.
  2. Enhanced damages due to “willfulness.”
  3. A court order to prevent further infringement.
  4. Recovery of attorneys’ fees and costs.

About Hugging Face

Hugging Face is recognized as one of the largest repositories of AI tools and models globally, having secured a total of $235 million in funding from major investors, including Google, Amazon, Nvidia, Intel, and Salesforce. The platform not only hosts a variety of models and tools but also develops its own AI solutions and provides consulting services to assist enterprises in customizing and deploying AI technologies effectively.

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