We study the Hilbert scheme $\mathrm{Hilb}_d(\mathbb{A}^\infty)$ from an $\mathbb{A}^1$-homotopical viewpoint and obtain applications to algebraic K-theory. We show that the Hilbert scheme $\mathrm{Hilb}_d(\mathbb{A}^\infty)$ is $\mathbb{A}^1$-equivalent to the Grassmannian of $(d-1)$-planes in $\mathbb{A}^\infty$... We then describe the $\mathbb{A}^1$-homotopy type of $\mathrm{Hilb}_d(\mathbb{A}^n)$ in a range, for $n$ large compared to $d$. For example, we compute the integral cohomology of $\mathrm{Hilb}_d(\mathbb{A}^n)(\mathbb{C})$ in a range. We also deduce that the forgetful map $\mathrm{FFlat}\to\mathrm{Vect}$ from the moduli stack of finite locally free schemes to that of finite locally free sheaves is an $\mathbb{A}^1$-equivalence after group completion. This implies that the moduli stack $\mathrm{FFlat}$, viewed as a presheaf with framed transfers, is a model for the effective motivic spectrum $\mathrm{kgl}$ representing algebraic K-theory. Combining our techniques with the recent work of Bachmann, we obtain Hilbert scheme models for the $\mathrm{kgl}$-homology of smooth proper schemes over a perfect field. (read more)