A sign is posted outside the Advanced Micro Devices (AMD) headquarters in Santa Clara, California, on May 10, 2022.
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Vultr, a startup that leases graphics processors and other cloud infrastructure to companies, has raised $333 million in a deal that values the company at $3.5 billion. AMDVenture arm and hedge fund LuminArx Capital Management led the round.
Founded in 2014, Vultr is known as a cost-effective virtual server provider. Vultr offers GPUs from AMD and competitors Nvidiawhich are in high demand due to the boom in generative artificial intelligence. It is the first time the company has used equity financing, although Bank of America and JPMorgan Chase agreed to provide the company with a $150 million credit facility in 2021.
Nvidiathe biggest beneficiary of the AI wave to date, has invested in the specialized cloud provider CoreWeave. AMD’s central processing units are also available through Vultr Intels.
Unlike the top cloud providers, Vultr doesn’t have its own AI chip that competes with AMD or Nvidia.
“We will never try to build GPUs and compete at that level,” Vultr CEO JJ Kardwell said in an interview with CNBC.
The new capital injection will be used for international expansion, Vultr said in a statement opinion. The company currently has 32 data center locations, mostly outside North America. Customers include Microsoft’s Activision Blizzard, according to The Wall Street Journalwhich previously reported on Vultr’s funding.
DigitalOceana competitor to Vulr, went public in 2021 and is now valued at a similar $3.5 billion.
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