Together AI Soars to $3.3 Billion Valuation After Massive $305 Million Funding Round
Yahoo Finance•1 day ago•
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Together AI Soars to $3.3 Billion Valuation After Massive $305 Million Funding Round

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Summary:

  • Together AI raises $305 million, reaching a valuation of $3.3 billion.

  • The funding round was led by General Catalyst and included major investors like Nvidia and Salesforce Ventures.

  • The platform provides access to 200+ open source AI models, facilitating quick project initiation for developers.

  • Annualized revenue has surged to over $100 million, up from $30 million in early 2024.

  • Plans to double workforce to meet growing demand for AI solutions.

Together AI: A Rising Star in AI Computing

Together AI, a startup that provides access to artificial intelligence computing, has recently raised $305 million from investors led by General Catalyst. This funding round has catapulted the company's valuation to an impressive $3.3 billion, indicating a robust corporate demand for AI solutions.

Strong Investor Support

Notable investors in this funding round include Saudi Arabia's Prosperity7 Ventures, Salesforce Ventures, Nvidia Corp., Kleiner Perkins, Emergence Capital, and Lux Capital. This diverse backing underscores the growing confidence in Together AI's business model and its market potential.

Empowering Developers with AI Tools

Together AI offers a platform that enables developers to access over 200 open source AI models, including Meta Platforms Inc.'s Llama and models from the Chinese startup DeepSeek. The company's CEO, Vipul Ved Prakash, emphasized their commitment to providing an end-to-end service that encompasses data centers, computing clusters from Nvidia, and essential software layers. This integration allows customers to quickly initiate their AI projects.

Rapid Growth Amid Rising Demand

As demand for AI solutions escalates, Together AI has reported a remarkable growth trajectory, achieving over $100 million in annualized revenue, a significant increase from just $30 million in early 2024. This growth reflects the startup's ability to adapt and thrive in a competitive landscape.

Plans for Expansion

With its latest valuation representing a significant leap from $1.25 billion in March 2024, Together AI intends to use the new funding to double its workforce of 160 by the end of 2025. This expansion aims to enhance their service capabilities and meet the increasing demand for AI technologies in various sectors.

Innovative Technology Partnerships

Nvidia plays a crucial role not only as an investor but also as a partner. Together AI plans to deploy Nvidia's Blackwell GPUs in its data centers, further solidifying its technological foundation and enhancing its service offerings.

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