AI Neocloud Together AI Raises $800M, Leaps to $8.3B Valuation
Together AI, a neocloud providing open-source AI model infrastructure, has raised $800 million in Series C funding, boosting its valuation to $8.3 billion.
Together AI, an AI neocloud company founded in 2022, announced on Wednesday that it has raised $800 million in a Series C funding round at an $8.3 billion valuation. The round was led by Aramco Ventures, with participation from Vista Equity Partners, General Catalyst, Emergence Capital, Nvidia, March Capital, Pegatron, SentinelOne's S Ventures, and others. This marks a significant jump from its previous Series B round about 16 months ago, when it raised $305 million at a $3.3 billion valuation. The company initially launched with a strong Series A round of $102.5 million led by Kleiner Perkins with Nvidia and Emergence Capital in 2023.
Rumors of this round surfaced in March, when The Information reported that the company was seeking $1 billion at a $7.5 billion valuation. If those numbers were accurate, Together AI took less money but potentially secured better terms from investors.
The substantial capital infusion comes as Together AI claims annual bookings exceeding $1.15 billion as of its last quarter. Companies are increasingly adopting competent yet far less expensive open-source models via neocloud providers like Together AI, rather than paying premiums for tokens on closed frontier models. Together AI cites research indicating that open-source model usage has tripled across the industry in the past year.
The company says it has thousands of paying customers, naming Cursor, Cognition, and Decagon among them. Neoclouds—companies providing AI-specific hardware (often Nvidia GPU clusters) and other infrastructure tools—have become hot commodities for venture capital investment. For example, Upscale AI raised $500 million last month, and TensorWave raised $350 million last month as well.
Together AI was co-founded by Vipul Ved Prakash, who sold his previous startup, social media search platform Topsy, to Apple in 2013 for over $200 million. His co-founders are Stanford professor Percy Liang and ETH Zürich/University of Chicago associate professor Ce Zhang.
