Vultr Secures 333M Funding Boost Valuing It At 35 Billion As Fierce Competition For Ai Infrastructure Intensifies

Vultr, a decade-old AI cloud infrastructure startup, has achieved a significant milestone with its $333 million growth financing round, valuing the company at an impressive $3.5 billion. This marks Vultr’s first outside round of funding, underscoring fierce competition in the market for AI infrastructure providers.

The deal is co-led by AMD Ventures, the venture arm of semiconductor giant AMD, and LuminArx Capital Management, highlighting the increasing importance of high-performance computing in the AI ecosystem. The investment will enable Vultr to acquire more graphics processing units (GPUs), a critical component in powering large language models that are driving innovation in various industries.

AMD’s senior vice president and chief strategy officer of corporate development, Mathew Hein, praised Vultr for its expertise in delivering secure, compliant, and scalable cloud infrastructure. He noted that the company’s deployment of AMD Instinct accelerators positions it as a leader in providing innovative cloud solutions for enterprises and AI innovators. “We share Vultr’s mission to empower enterprises and AI innovators with unparalleled access to high-performance compute for AI model development and deployment,” Hein said, underscoring the strategic partnership between the two companies.

The funding round comes amidst intense competition among chipmakers, including AMD, Nvidia, and Intel, to provide AI infrastructure for enterprises. According to Dave McCarthy, a research vice president in cloud and edge services at International Data Corp, AMD is trying to increase its competitiveness with Nvidia by supporting promising startups like Vultr. “For AMD to be able to get good billing with an up-and-coming cloud provider like Vultr will help them get more visibility in the market,” McCarthy noted.

The significant investment in Vultr reflects the growing demand for AI infrastructure and the importance of high-performance computing in driving innovation across various industries. As companies continue to invest heavily in AI research and development, startups like Vultr are poised to play a critical role in empowering enterprises and innovators with the tools they need to succeed.