Data center operator Vultr has secured $333 million in funding, led by investment manager LuminArx, to bolster its AI data center capabilities. This investment, which values Vultr at $3.5 billion, reflects the growing demand for AI-focused infrastructure alternatives to hyperscalers like Microsoft and Google. Vultr plans to expand its data center footprint and acquire graphics processing units (GPUs), crucial for running AI workloads. The company aims to capitalize on the surge in AI development by providing a competitive platform for businesses seeking to leverage this transformative technology.
Data centre operator Vultr has raised $333mn of capital from investors including chipmaker AMD , scaling up its bet that companies looking to deploy artificial intelligence will seek alternatives to so-called “hyperscalers” such as Microsoft and Google parent Alphabet.The fundraising, led by investment manager LuminArx, gives Vultr a valuation of $3.5bn, unusually high for a company that had not previously raised external equity capital.
Away from the tech mega-caps, emerging “neocloud” companies such as Vultr, CoreWeave, Lambda Labs and Nebius have raised billions of dollars of debt and equity in the past year in a bet on the expanding power and computing needs of AI models. Compared with Nvidia, AMD is a distant second in designing GPUs, part of a market for AI chips that Bank of America analysts estimates will be worth $276bn by 2027.
AI Data Centers Cloud Computing Investment Gpus Hyperscalers AMD Vultr
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Vultr Raises $333 Million to Fuel AI ExpansionVultr, a cloud computing platform provider, secured $333 million in funding led by LuminArx, valuing the company at $3.5 billion. This investment will enable Vultr to expand its data center capabilities and acquire GPUs, essential for powering artificial intelligence applications.
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