Nvidia has reportedly agreed to buy the artificial intelligence (AI) platform Hugging Face for $12.9B (£9.5B), according to a report on Wednesday night. One of those who could benefit is NBA star Kevin Durant, an early backer of the company. A widely shared post says the deal could turn the $250,000 (£183,000) he reportedly invested into more than $60M (£44M). Neither company has confirmed the deal, and nobody has said how much Durant put in.
Durant invested early, and the timing is the point. A seed round is one of the first times a startup raises money, typically while the company is still building its product and business. Later rounds, called Series A and Series B, raise more and dilute the earlier backers, whose slice of the company gets smaller each time. What an early backer gets depends on the cheque size, the dilution that followed, and the terms of the sale.
