ScaleOps raises $130M to advance computing capabilities amid demand for AI

AI may be on the rise, but behind the scenes, companies are spending a lot of money. GPUs become redundant, workloads are over-delivered, and cloud prices continue to rise. ScaleOps they believe that the problem is not lack – it’s poor management.

The startup, which develops software that automates and redistributes computing resources in real-time, has raised $130 million in an $800 million valuation, ScaleOps said Monday. The Series C round of funding was led by Insight Partners, with participation from existing investors, including Lightspeed Venture Partners, NFX, Glilot Capital Partners, and Picture Capital. The company claims that its software reduces the cost of cloud computing and AI by 80%.

ScaleOps was founded in 2022 by Yodar Shafrir, a former engineer at Run:ai, a GPU music startup. taken by Nvidiaafter seeing how difficult it was for companies to manage the most complex AI tasks. Although tools like Kubernetes help manage workloads on large clusters of machines, they often rely on configurations that struggle to adapt to changing demands, resulting in underutilization of GPUs, performance issues, and costs.

“As part of my role (at Run:ai), I met a lot of customers, especially DevOps teams,” Shafrir, the company’s CEO, told TechCrunch. “Even though they loved what Run:ai offered, they still struggled to manage their production workloads, especially as rendering tasks became more common in the AI ​​era. When I got out, I realized that the problem wasn’t just GPUs. It extended to computing, memory, storage, and networking. The same thing kept repeating itself; teams were failing to properly manage resources.”

DevOps teams are often chasing multiple stakeholders to solve problems, and often, those efforts fail. Most of the existing tools identified problems, but stopped short of providing real solutions. This gap revealed a huge market opportunity.

ScaleOps aligns software needs with development decisions in real time and provides an autonomous solution that manages end-to-end infrastructure, Shafrir said.

“Kubernetes is a great system. It’s flexible and very flexible. But that’s the problem,” said Shafrir. “Kubernetes relies heavily on static configuration. Applications today are very dynamic, requiring constant manual work across teams. You need something that understands the context of each application – what it needs, how it works, and how the environment is changing.”

There are several players on this site, incl Release AI, The value of the cube and Place. Although many companies have introduced automation tools, they often work without any, which can lead to operational problems and less time, reducing the trust between the teams running the production center, according to the CEO.

The startup says its platform was designed specifically to be built from the ground up. It’s self-contained, trend-savvy, and works out-of-the-box without the need for manual updates — features the company believes set ScaleOps apart from its competitors.

The New York-based company serves customers around the world, especially those who use Kubernetes infrastructure, which runs in large organizations and companies in Europe and India. ScaleOps says its platform is used by a variety of clients, including Adobe, Wiz, DocuSign, Salesforce and Coupa.

The Series C funding comes nearly a year and a half after ScaleOps raised $58 million Series B round in November 2024. Since then, the group has seen a huge demand for independent solutions to manage cloud infrastructure, Shafrir said, adding that it is still in the early stages of its development. The company’s total revenue is about $210 million, according to a spokesperson.

ScaleOps says it has seen 450% year-over-year growth and that it has tripled in the last 12 months, with plans to further triple by the end of the year.

With the new headquarters, ScaleOps plans to release new products and expand its platform. As AI drives demand for computing, infrastructure management is growing. The founders said they will continue to build independent homes.