AI is on the rise, but companies face significant issues with underutilized expensive computing resources. GPUs remain idle, workloads are over-provisioned, and cloud expenses rise. ScaleOps attributes this to mismanagement rather than scarcity.
ScaleOps, which develops real-time software to manage and reallocate computing resources, announced it secured $130 million in funding at an $800 million valuation. The Series C funding, led by Insight Partners, also saw participation from existing investors like Lightspeed Venture Partners, NFX, Glilot Capital Partners, and Picture Capital. ScaleOps claims its software can cut cloud and AI infrastructure costs by up to 80%.
Established in 2022 by Yodar Shafrir, formerly of Run:ai, ScaleOps aims to address the challenges of managing complex AI workloads. Despite tools like Kubernetes, static configurations often cause inefficiencies, leading to idle GPUs and performance problems.
Shafrir, ScaleOps’ CEO, noted that customers, particularly DevOps teams, struggled with managing production workloads, especially as AI became more prevalent. The issues weren’t limited to GPUs but extended to compute, memory, storage, and networking, indicating a broader resource management challenge.
DevOps teams frequently encountered difficulties in addressing issues due to stakeholder mismanagement, revealing a major market gap. Existing tools typically offered problem visibility but lacked actual solutions, creating opportunities for ScaleOps.
ScaleOps’ autonomous solution connects application requirements with infrastructure decisions, managing resources end-to-end in real time.
Shafrir commented that while Kubernetes is a robust, configurable system, its reliance on static configurations poses challenges. Dynamic applications necessitate continuous manual adjustments across teams, requiring a solution that understands the application context, behavior, and changing environments.
Competing in this space with companies like Cast AI, Kubecost, and Spot, ScaleOps argues its context-aware platform provides autonomous management, distinguishing it from others that may lack the complete context needed, potentially causing performance issues and downtime.
Based in New York, ScaleOps serves global enterprise clients using Kubernetes-based infrastructure, including Adobe, Wiz, DocuSign, Salesforce, and Coupa.
The Series C funding follows a $58 million Series B round in November 2024. ScaleOps has observed significant demand for autonomous cloud infrastructure solutions, with 450% year-over-year growth and tripled headcount in 12 months. With $210 million in total funding, ScaleOps aims to launch new products and expand its platform, emphasizing the critical need for autonomous infrastructure as AI drives demand for computing capabilities.