Hugging Face settled a lawsuit filed by Korean AI startup FriendliAI for patent infringement with a confidential settlement. The two-year-long lawsuit was based on Hugging Face’s alleged unauthorised use of technology related to the ‘batching with iteration-level scheduling’ patent. The parties agreed that the details of the settlement would be kept confidential and that the case could not be reopened. Hugging Face is known as a large platform offering AI models and tools worldwide, while FriendliAI is an initiative that develops AI infrastructure solutions. The lawsuit included the allegation that Hugging Face used this technology in its Text Generation Inference tool. After the agreement, the court will maintain jurisdiction over the case.

Hugging Face, a prominent AI developer platform, has settled a patent infringement lawsuit filed by Korean AI startup FriendliAI. The case, which lasted nearly two years, was centered on FriendliAI’s patent for “batching with iteration-level scheduling,” a method designed to optimize how AI systems process multiple requests simultaneously.

Filed in the U.S. District Court for the Northern District of Delaware, the settlement includes a “confidential agreement” between the two companies. As part of the agreement, the case has been dismissed “with prejudice,” meaning it cannot be refiled. Additionally, the court will retain jurisdiction over the settlement’s enforcement.

FriendliAI alleged that Hugging Face’s Text Generation Inference tool incorporated their patented batching technique without authorization. This technology enables AI systems to process requests in real time, adding new inputs dynamically while delivering completed outputs from an active batch. FriendliAI sought damages, an injunction to prevent further patent violations, or a licensing agreement for its patented method.

Hugging Face, based in Brooklyn, did not comment on the settlement. The company, known for hosting and developing machine learning models, remains a major player in the AI ecosystem. Meanwhile, FriendliAI, established in 2021, focuses on infrastructure solutions for AI and operates out of Korea and Redwood City, California.

The settlement allows both companies to move forward without further litigation, highlighting the importance of intellectual property in the rapidly evolving AI industry.