Neocloud Together AI Raises $800M, Leaping to $8.3B Valuation
Together AI, an AI neocloud that rents out Nvidia GPU clusters and other AI-specific infrastructure, has raised an $800 million Series C at an $8.3 billion valuation. This latest funding round was led by Aramco Ventures, with participation from Vista Equity Partners, General Catalyst, Emergence Capital, Nvidia, March Capital, Pegatron, SentinelOne’s S Ventures, and others.
The company was founded in 2022 by Vipul Ved Prakash, who sold his previous startup, social media search platform Topsy, to Apple in 2013 for a reported $200+ million. Prakash co-founded Together AI with Stanford professor Percy Liang and ETH Zürich/University of Chicago associate professor Ce Zhang.
Together AI’s latest funding round comes just 16 months after it raised a $305 million Series B at a $3.3 billion valuation. The company has seen significant growth in recent years, with annual bookings of over $1.15 billion as of its last quarter. This has been driven by the increasing adoption of open-source models via neocloud providers like Together AI, which are far less expensive than closed frontier models.
The use of open-source models has tripled across the industry in the past year, according to Together AI, which cites research from AI gateway OpenRouter. The company has thousands of paying customers, including Cursor, Cognition, and Decagon.
Neoclouds have been hot commodities for VC investment more broadly, with recent examples including Upscale AI and TensorWave. Together AI’s latest funding round is a significant milestone in the company’s growth and solidifies its position as a leading player in the AI neocloud market.
Together AI’s co-founders have a strong track record in the tech industry, with Prakash’s previous startup Topsy being sold to Apple in 2013. Liang is a Stanford professor and Zhang is an associate professor at ETH Zürich/University of Chicago. Their combined expertise has helped drive Together AI’s success in the AI neocloud market.
The company’s latest funding round will help it continue to invest in its infrastructure and expand its customer base. With its strong track record and experienced leadership team, Together AI is well-positioned for continued growth and success in the AI neocloud market.
