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Neocloud Together AI raises $800M, leaps to $8.3B valuation
Together AI, an AI neocloud provider, has raised $800 million in Series C funding, reaching an $8.3 billion valuation. Founded in 2022, the company offers Nvidia GPU clusters and boasted over $1.15 billion in annual bookings. The funding round was led by Aramco Ventures and highlights a surge in the adoption of open-source AI models.
Key points
- Together AI raised $800 million in Series C funding, increasing its valuation to $8.3 billion.
- The funding round was led by Aramco Ventures, with contributions from multiple investors including Nvidia.
- Previously, Together AI secured $305 million in Series B at a valuation of $3.3 billion about 16 months ago.
- The company claims $1.15 billion in annual bookings, reflecting a growing shift to more affordable open-source AI models.
- This increase in funding signalizes a trend within the VC community towards neocloud providers.
- Together AI is co-founded by Vipul Ved Prakash, Percy Liang, and Ce Zhang, with backing from notable tech investors.
Why it matters
- The rise of companies like Together AI mirrors a trend where businesses are moving away from expensive AI models towards more cost-effective, open-source solutions.
- Neocloud infrastructure is gaining popularity, with similar companies, like Upscale AI and TensorWave, also securing significant funding.
- As companies adopt AI technology more widely, the market for GPU infrastructure, especially focused on open-source, is rapidly expanding.
Together AI's significant funding round demonstrates the growing investor confidence in neocloud infrastructure and the industry's shift towards open-source AI solutions, reflecting broader trends in innovation and technology finance.