Summary:
Temporal raises $146 million to enhance AI-driven microservices.
Investment focus includes R&D, Nexus feature development, and Azure cloud expansion.
Led by Tiger Global, the funding increases valuation to $1.72 billion.
Founded by former Uber engineers, Temporal serves major clients like Nvidia and Stripe.
Plans to grow workforce to 300 employees and expand in EMEA and Asia-Pacific.
Seattle-based Temporal has established itself in the microservices landscape by offering a platform that streamlines the complexities of building and managing integrations across various cloud services. With the surge in AI developments, Temporal has successfully raised $146 million in a growth round, aiming to expand into agentic AI microservices.
Investment Focus
A significant portion of this funding will be allocated to R&D. In late 2024, Temporal launched a new feature called Nexus within its Temporal Cloud platform, enhancing security, fault isolation, and modularity. The company plans to continue its development, alongside expanding its public cloud services on Azure to facilitate more cross-cloud operations and invest in sales and marketing efforts.
Leadership and Valuation
The funding round is led by Tiger Global, with contributions from previous investors like Index Ventures and Sequoia Capital. This Series C funding brings Temporal's total raised capital to $350 million. The current valuation is set at $1.72 billion, slightly up from the previous flat valuation of $1.5 billion during the Series B extension.
Origins and Growth
Founded by Samar Abbas and Maxim Fateev, who previously developed Cadence at Uber, Temporal has been providing its orchestration platform since 2019. It has attracted clients like Box, Instacart, Snap, Stripe, and Nvidia, the latter of which has its microservices platform called NIM for deploying AI models.
Performance Metrics
Despite a slower growth rate compared to previous years, Temporal reported a 4.4x revenue increase over the last 18 months, with 183,000 active users on its open-source platform and 2,500 customers on its managed service.
Future Outlook
Temporal is set to grow its workforce from 250 to over 300 employees and is focusing on expanding its presence in EMEA and Asia-Pacific & Japan regions. The CEO emphasizes the importance of executing long workflows reliably, a necessity that has led to the rise of competitors in the space.
Note: The journey of Temporal illustrates the evolving landscape of microservices and AI integration, showcasing the potential for innovation in cloud services.
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