Neocloud Together AI raises $800M, leaps to $8.3B valuation

Together AI, a cloud provider built around renting out Nvidia GPU capacity for artificial intelligence workloads, has closed an $800 million Series C round that values the company at $8.3 billion. The company confirmed the raise on Wednesday, marking a jump of roughly two and a half times its prior valuation in a little over a year.

Founded in 2022, Together AI operates as one of the so-called "neoclouds" — infrastructure providers that lease out Nvidia chips and other specialized hardware to companies training and running AI systems, rather than offering the broader suite of services found at traditional cloud giants. The firm has carved out a niche by catering especially to developers and businesses that want to run openly available AI models rather than proprietary ones.

Saudi Arabian oil giant Aramco's venture arm, Aramco Ventures, took the lead position in the new round. Other backers joining the raise included Vista Equity Partners, General Catalyst, Emergence Capital, chipmaker Nvidia, March Capital, electronics manufacturer Pegatron, and S Ventures, the venture investment vehicle tied to cybersecurity firm SentinelOne, among additional participants.

The jump in valuation comes fast on the heels of Together AI's previous fundraising. Roughly sixteen months earlier, in early 2025, the company had pulled in $305 million in a Series B round that valued it at $3.3 billion. Its very first institutional round was similarly large relative to an early-stage startup: a $102.5 million Series A closed in 2023, led by venture firm Kleiner Perkins with backing from both Nvidia and Emergence Capital — meaning Nvidia has now supported the company across at least two funding stages.

The size and speed of Together AI's latest raise reflects a broader gold rush among GPU-focused cloud operators, as demand for AI computing power continues to outstrip available supply. Investors have poured billions into firms that can quickly stand up data centers packed with Nvidia hardware, betting that businesses will keep needing outside computing capacity rather than building it themselves, even as major cloud incumbents expand their own AI offerings.

That enthusiasm has not gone unquestioned, however. Critics of the neocloud model have pointed to the enormous capital outlays required to keep pace with hardware upgrades, the risk that demand could cool if AI spending slows, and the unusual dynamic of Nvidia investing directly in companies that are simultaneously among its largest customers for chips. Together AI's own valuation trajectory — tripling in about sixteen months — underscores how quickly sentiment and pricing in this corner of the market can shift in either direction.

With fresh capital in hand, Together AI is positioned to expand its GPU footprint and compete more aggressively against both larger cloud providers and rival neoclouds chasing the same pool of AI developers. How durable that growth proves will likely depend on whether enterprise appetite for renting, rather than owning, AI infrastructure keeps expanding at its recent pace.

Source: TechCrunch