DigitalOcean has announced the acquisition of cloud infrastructure and AI software provider Paperspace for $111 million.
New York-based Paperspace specializes in cloud infrastructure as a service for highly scalable applications leveraging graphics processing units (GPUs). The firm’s cloud platform is designed for building and scaling AI applications, enabling customers to deploy LLMs, fine-tune foundation models, harness generative media, as well as automate workflows.
The offering will be integrated into the DigitalOcean to enable its customers to test, develop, and deploy artificial intelligence and machine learning (AI/ML) applications, as well as enhance existing tools.
The firm says the move will also allow smaller businesses to utilize GPUs in ways that have typically only been available to large enterprises, enabling cost-effective experimentation and production across various AI/ML use cases – such as generative AI, text analysis, and natural language processing.
In an announcement, DigitalOcean said the growing demand for AI/ML cloud solutions make Paperspace a valuable addition to its portfolio.
“This acquisition marks a significant milestone in DigitalOcean's journey to revolutionize how SMBs and startups harness the power of the cloud and AI/ML for their applications and businesses,” said Yancey Spruill, CEO of DigitalOcean.
“The combined offerings allow customers to focus more on building applications and growing their businesses and less on the infrastructure powering them.”
Post-acquisition, Paperspace will continue as its own business unit, but its customers will now have access to a broader cloud services platform that includes DigitalOcean’s documentation, tutorials, and support system for AI applications. On the business side, DigitalOcean says Paperspace will also benefit from its self-serve model and go-to-market strategy.
Existing DigitalOcean customers will now be able to leverage GPUs alongside their CPU workloads. The firm says the acquisition expands its serviceable market and will provide cross-sell and upsell opportunities for both businesses.
"DigitalOcean is renowned for simplifying complex cloud technologies and making them more accessible to developers and business alike,” commented Dillon Erb, Co-founder and CEO of Paperspace.
“We are thrilled to join forces with DigitalOcean, as we believe there is no better company to unlock the endless possibilities of AI/Ml for developers and businesses alike."
