DigitalOcean Acquires Paperspace To Expand AI Development Startup

DigitalOcean acquires Paperspace an AI cloud computing development startup, for $111 million from New York. The infrastructure and tooling of Paperspace were formerly linked with DigitalOcean’s offerings, according to Yancey Spruill, CEO of DigitalOcean. Customers can simply test, build, and deploy AI applications thanks to this integration. The good news for Paperspace’s customers is that they will now gain access to DigitalOcean’s cloud services. Databases, storage, app hosting, documentation, how-to videos, and a strong support network are all included in the services.

Paperspace will continue to operate as a separate business within DigitalOcean for the time being. Additionally, Paperspace’s consumers won’t notice any modifications to their service right away.

Spruill claims that the entire company is enthusiastic about extending its portfolio, which is geared towards startups and the world’s SMBs, with accessible AI and machine learning offerings. They added that their customers will be able to concentrate more on developing applications and expanding their businesses and less on the infrastructure supporting them thanks to the merged solutions.

In the year 2014, Daniel Kobran and Dillon Erb co-founded Paperspace.

The initial focus of Paperspace was on reducing the price of virtual computers. High-performance workstations for design, visualization, and gaming in the cloud are made possible by these virtual machines. Paperspace focused heavily on its AI offerings after bringing AI into the mainstream. A set of tools for creating, honing, deploying, and hosting AI models in the cloud are being released.

A number of buyers, including Battery Ventures, Intel Capital, SineWave Ventures, and Sorenson Capital, contributed $35 million to Paperspace prior to this acquisition.

Dillon Erb saw the acquisition as a step in the direction of a comprehensive cloud CPU and GPU computing offering to compete with other suppliers in the public cloud market. A new class of consumers will be enabled by DigitalOcean and Paperspace’s combined power.

In addition, he noted that DigitalOcean is recognized for making difficult cloud technology more approachable for developers and companies. The business is overjoyed to partner with DigitalOcean because it believes there is no better organization to help developers and businesses alike take advantage of the limitless potential of AI and machine learning.