DigitalOcean Makes Waves with $111m Paperspace Acquisition, Amplifying AI Capabilities for SMBs and Startups

DigitalOcean, the esteemed cloud hosting pioneer, has recently taken an exhilarating step by confirming its acquisition of Paperspace, a trailblazing New York-based cloud computing and AI startup, for an impressive $111m. This acquisition not only marks a significant progression in the world of cloud computing but also showcases the continued success of startups nurtured through YCombinator, with Paperspace being a distinguished member of the YCW15 batch.

Backed in its early stages by Zillionize as part of its seed round investment strategy, Paperspace has showcased exemplary growth and innovation in the cloud and AI sectors. You can read more around our initial investment of PaperSpace here.

The acquisition, as stated by DigitalOcean’s CEO Yancey Spruill, signifies the fusion of Paperspace’s innovative infrastructure and tooling with DigitalOcean’s esteemed product range. This collaboration is poised to present customers with an enhanced platform for testing, developing, and deploying top-tier AI applications.

DigitalOcean’s commitment to uncomplicated solutions is about to reach new heights with the integration of Paperspace. Recognized for its scalable GPU-accelerated infrastructure tailored for AI/ML applications, Paperspace will offer DigitalOcean customers unparalleled opportunities to train, build, and scale ML models in the cloud.

The acquisition promises to level the playing field, enabling startups and SMBs to delve into AI/ML applications such as generative media, text analysis, and more. With the backing of Paperspace’s cutting-edge capabilities and DigitalOcean’s renowned simplicity and community, more businesses can now harness the power of AI/ML without the constraints previously reserved for larger enterprises.

Staying true to its ethos, DigitalOcean continues to simplify intricate technologies, enabling SMBs to center their attention on creating transformative products and software with the potential to redefine the future. Their purchase of Paperspace takes this notion forward and brings a whole host of new services to its loyal customer base.

The Zillionize team is always thrilled to witness our portfolio companies pushing boundaries and harnessing cutting-edge technologies to address challenging tech issues. The future looks bright with DigitalOcean and Paperspace at the helm, and we eagerly anticipate more groundbreaking updates from them. We look forward to following their journey as they shape the future of AI and cloud computing. For a deeper dive into this acquisition, check out the detailed announcement on the DigitalOcean blog.

Zillionize, a prominent seed round investor, has been championing technological startups since its inception in March 2011. Our investment strategy revolves around identifying visionary early-stage startups through a meticulous data-driven approach. Our portfolio boasts investments in several unicorns, and we’re optimistic about more of our investments achieving this status in the forthcoming years.