Together AI secures $800M in Series C funding; AI GPU cloud valued at $8.3B

GPU cluster rental and open AI model service provider Together AI, founded in 2022, raised $800M in Series C funding led by Aramco Ventures. Other participants included Vista Equity Partners, General Catalyst, Nvidia, March Capital, and Emergence Capital. This latest funding brings the total valuation of Together AI to $8.3B, up from $3.3B in its previous round (Series B) more than a year ago.

Annualized bookings for Together AI exceed $1.15B. Customers include code editor Cursor, agent company Cognition, and Decagon. Together AI aims to be a more affordable option than closed APIs offered by OpenAI and Anthropic, allowing developers to deploy open models such as Llama and Mistral in their applications.

There’s been a flurry of investments in the “neocloud” space, which refers to companies that provide infrastructure for AI models without developing their own models. Recently, competitors Upscale AI ($500M) and TensorWave ($350M) also secured substantial funding. Demand for open models has tripled in the last year, and this layer of infrastructure is becoming increasingly popular within the AI industry.