en.Wedoany.com Reported - Together AI announced on Wednesday that it has completed an $800 million Series C funding round, valuing the company at $8.3 billion. Founded in 2022, this Neocloud company primarily rents out Nvidia GPU clusters and other AI-specific infrastructure.
This funding round was led by Aramco Ventures, with participation from Vista Equity Partners, General Catalyst, Emergence Capital, Nvidia, March Capital, Pegatron, and S Ventures, a subsidiary of SentinelOne. Approximately 16 months ago, the company completed a $305 million Series B funding round at a $3.3 billion valuation. Its early-stage financing was also smooth, securing $102.5 million in Series A funding in 2023, led by Kleiner Perkins, with participation from Nvidia and Emergence Capital.
In March of this year, media reports indicated that Together AI was seeking to raise $1 billion at a $7.5 billion valuation. The final funding amount was lower than that reported figure, but the company may have secured better terms from venture capitalists than what it pursued in the spring. Together AI disclosed that its annualized bookings for the previous quarter exceeded $1.15 billion. An increasing number of enterprises are adopting open-source models through Neocloud providers like Together AI. These models offer excellent performance at a fraction of the cost of closed-source models, and companies are gradually shifting toward this option rather than paying the token premium for closed-source frontier models across all AI applications.
The company stated that the use of open-source models across the industry has tripled over the past year, citing research from AI gateway OpenRouter as evidence. Together AI has thousands of paying customers, including Cursor, Cognition, and Decagon. Neocloud has become a hot area for venture capital investment, with recent examples including: last month, Upscale AI completed a total of $500 million in Series A and extension funding at a $2 billion valuation; and TensorWave, which focuses on AMD GPU clusters, completed a $350 million Series B funding round last month at a $1.55 billion valuation.
Together AI was co-founded by Vipul Ved Prakash, who previously sold social media search platform Topsy to Apple for over $200 million in 2013. Its co-founders include Stanford University Professor Percy Liang and Ce Zhang, an Associate Professor at ETH Zurich and the University of Chicago.
