JJ Kardwell, CEO of Vultr, announced on LinkedIn that the company, a leading independent cloud infrastructure provider, has achieved a valuation of $3.5 billion after securing funding from LuminArx Capital Management and AMD.
The funding highlights the rising demand for AI infrastructure and marks a major milestone for the company. Founded in 2014 by David Aninowsky, Vultr has grown solely on operating cash flow and has become a major player in cloud computing.
“This new financing accelerates our growth in AI infrastructure and cloud computing as we build the category-defining independent cloud infrastructure company,” he said.
The new funding will enable Vultr to expand its AI infrastructure and cloud computing offerings, making it a strong alternative to traditional hyperscalers.
Vultr’s mission is to deliver high-performance cloud services that are affordable, accessible, and easy to use. Its offerings include cloud compute, cloud GPU, bare metal, and cloud storage, and it serves hundreds of thousands of active customers across 185 countries.
In related developments, CoreWeave, a specialised cloud provider focused on GPU-powered workloads, secured $2.3 billion in financing last year. Magnetar Capital and Blackstone Tactical Opportunities led the funding, with contributions from BlackRock, Pacific Investment Management Company (PIMCO), Coatue, and Carlyle.
The financing supports CoreWeave’s plans to increase computing capacity, open new data centres, and expand its workforce to meet the growing demand for AI applications like LLMs and generative AI.
Meanwhile, AMD has enhanced its efforts to close the GPU performance gap with NVIDIA. AMD CEO Lisa Su recently announced the MI325 advanced GPU accelerator, calling it a “game-changing product” set to rival NVIDIA’s H200. Meanwhile, the MI350 series aims to compete with NVIDIA’s Blackwell GPUs. Expressing optimism, Su stated that AMD expects to close the performance gap faster than anticipated with its new hardware.
Andrew Dieckmann, CVP and GM of data centre GPU at AMD, also commented on the company’s progress. “We are trying to take very representative benchmarks that are realistic. I can tell you that in our customer engagements, especially regarding inference workloads, we have yet to find a single workload on which we cannot outperform NVIDIA,” he said. He, however, acknowledged that AMD doesn’t always outperform its rivals.
As competition intensifies in the AI and cloud infrastructure market, Vultr, CoreWeave, and AMD are working to meet the growing demands of enterprises and innovators worldwide.
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