DigitalOcean acquires AI startup Paperspace for $111 million, enhancing cloud services for AI application development. The integration will empower customers to test, develop, and deploy AI apps more efficiently. Paperspace customers will gain access to DigitalOcean's robust cloud services. The acquisition expands DigitalOcean's offerings for SMBs and startups, allowing them to focus on application development. Paperspace, known for its AI tools and virtual machines, will continue to operate as a standalone unit. The acquisition aligns with DigitalOcean's vision to provide comprehensive cloud CPU and GPU compute options.
“We’re excited to expand our portfolio tailored to the world’s small- and medium-sized (SMBs) businesses and startups with simplified AI and machine learning offerings,” Spruill said. “The combined offerings allow customers to focus more on building applications and growing their businesses and less on the infrastructure powering them.”
DigitalOcean's acquisition of Paperspace marks an important move for the cloud hosting company to stay competitive in the rapidly evolving landscape of AI and machine learning. As major players like Microsoft, Amazon, and Google embrace generative AI, the industry is witnessing a significant shift towards AI-driven solutions. With AI becoming the top priority for many executives, investing in AI capabilities is crucial for companies to tap into this growing market.
By integrating Paperspace's infrastructure and tools, DigitalOcean aims to empower customers in testing, developing, and deploying AI applications with ease.
By acquiring Paperspace, DigitalOcean supercharges its cloud services, empowering small and medium-sized businesses and startups to unleash their full potential in application development without the hassle of infrastructure management. With the cloud market witnessing a surge in spending, Gartner's forecast of a 21.7% growth in cloud spending in 2023 confirms the enormous opportunity for businesses to leverage cloud technologies for innovation and growth.
In conclusion, DigitalOcean's acquisition of Paperspace demonstrates its dedication to staying relevant in the AI-driven cloud market. By integrating Paperspace's capabilities, DigitalOcean aims to deliver enhanced services to its customers while tapping into the growing demand for AI solutions. This acquisition sets the stage for DigitalOcean's continued success in providing tailored cloud services to SMBs, startups, and businesses venturing into AI and machine learning.
