NEW YORK–(BUSINESS WIRE)–DigitalOcean Holdings, Inc. (NYSE:DOCN), the cloud for small and medium-sized companies (SMBs) and startups, has acquired Paperspace, a number one supplier of cloud infrastructure as a service for extremely scalable functions leveraging graphics processing items (GPUs). The acquisition and integration of Paperspace’s superior expertise into the DigitalOcean platform will prolong DigitalOcean’s choices, enabling prospects to extra simply take a look at, develop and deploy synthetic intelligence and machine studying (AI/ML) functions, increase and improve current AI/ML functions and make the most of GPUs in ways in which have predominantly been the area of enormous enterprises.
The rising demand for AI/ML cloud options makes Paperspace’s GPU-powered infrastructure and AI/ML-focused software program stack priceless additions to DigitalOcean’s portfolio. Like DigitalOcean’s method to the cloud, Paperspace simplifies the AI/ML expertise, enabling straightforward and cost-effective experimentation and manufacturing throughout numerous AI/ML use circumstances, equivalent to generative media, textual content evaluation and pure language understanding, advice engines, picture classification, and lots of others.
The acquisition advantages each organizations’ prospects. Paperspace’s prospects will now have entry to a broader cloud providers platform. Paperspace prospects may even achieve entry to DigitalOcean’s intensive documentation, tutorials, and assist system to help them of their journey to construct and deploy AI functions. DigitalOcean prospects exploring or already constructing AI/ML functions will now have the ability to leverage GPUs alongside their CPU workloads. Collectively, DigitalOcean and Paperspace will present smaller companies and startups with a complete suite of cloud choices, superior networking, and the flexibleness to harness each GPU and CPU capabilities as AI/ML applied sciences evolve and demand will increase.
“We’re excited to broaden our portfolio tailor-made to the world’s SMBs and startups with simplified AI/ML choices,” mentioned Yancey Spruill, CEO of DigitalOcean. “This acquisition marks a big milestone in DigitalOcean’s journey to revolutionize how SMBs and startups harness the ability of the cloud and AI/ML for his or her functions and companies. The mixed choices permit prospects to focus extra on constructing functions and rising their companies and fewer on the infrastructure powering them.”
Paperspace will profit from DigitalOcean’s extremely efficient self-serve mannequin and environment friendly go-to-market technique. The acquisition expands DigitalOcean’s serviceable market and presents cross-sell and upsell alternatives for each entities, leveraging DigitalOcean’s mature platform, environment friendly advertising engine, and its intensive buyer base to drive development.
“DigitalOcean is famend for simplifying advanced cloud applied sciences and making them extra accessible to builders and companies alike,” mentioned Dillon Erb, Co-founder and CEO of Paperspace. “We’re thrilled to affix forces with DigitalOcean, as we imagine there isn’t a higher firm to unlock the countless prospects of AI/Ml for builders and companies alike.”
Importantly, the alignment in organizational historical past and tradition between DigitalOcean and Paperspace will guarantee a easy integration course of and a collaborative work setting. The 2 firms’ shared values and dedication to buyer success will proceed to foster innovation, improve buyer experiences, and reinforce each entities as trade leaders in cloud computing.
Transaction Phrases
Below the phrases of the transaction, DigitalOcean acquired Paperspace for $111 million in money. The acquisition is anticipated to have an immaterial impression on 2023 monetary outcomes. “Paperspace is a quickly rising enterprise with forefront expertise that considerably accelerates our AI/ML capabilities. We count on it to boost our income development in 2024 and past and we’ll make investments commensurately to additional speed up its development and take full benefit of this super rising market alternative,” mentioned Matt Steinfort, DigitalOcean’s CFO. On its Q2 2023 earnings name on August 3, 2023, DigitalOcean will share extra particulars on the strategic advantages of the acquisition and replace the Firm’s monetary outlook for 2023.
About DigitalOcean
DigitalOcean simplifies cloud computing so companies can spend extra time creating software program that adjustments the world. With its mission-critical infrastructure and absolutely managed choices, DigitalOcean helps builders at startups and small and medium-sized companies (SMBs) quickly construct, deploy and scale, whether or not making a digital presence or constructing digital merchandise. DigitalOcean combines the ability of simplicity, safety, group and buyer assist so prospects can spend much less time managing their infrastructure and extra time constructing modern functions that drive enterprise development. For extra info, go to digitalocean.com.
About Paperspace
Paperspace is a cloud platform for constructing and scaling AI functions. Paperspace buyer use-cases embrace deploying LLMs, fine-tuning Basis Fashions, constructing the following ChatGPT, harnessing generative media, and lots of extra. Tens of hundreds of people and companies use Paperspace to discover new fashions with Notebooks, automate coaching with Workflows, and produce their functions to life with Deployments.
Ahead-Trying Statements
This press launch could comprise forward-looking statements inside the that means of Part 27A of the Securities Act of 1933, as amended, and Part 21E of the Securities Change Act of 1934, as amended. These forward-looking statements could also be recognized by their use of phrases and phrases equivalent to “anticipate,” “allow,” “count on,” “will,” “imagine,” “proceed” and different comparable phrases and phrases. The result of the occasions described in these forward-looking statements is topic to identified and unknown dangers, uncertainties and different components that would trigger precise outcomes to vary materially from the outcomes anticipated by these forward-looking statements, together with these components contained within the “Danger Components” part of our SEC filings. It isn’t attainable for us to foretell all dangers and uncertainties that would have an effect on the forward-looking statements contained on this launch. The outcomes, occasions and circumstances mirrored within the forward-looking statements might not be achieved or happen.