AI Infrastructure Corporation Together AI announced the completion of the $800 million C round of financing, which increased the valuation to $8.3 billion. Founded in 2022, the company provides mainly AI-oriented training and reasoning-oriented cloud infrastructure, with an operational focus on providing algorithms and related tools around open source models.
The valuation was significantly higher than the previous round.
The company disclosed that this round of financing was led by Aramco Ventures, with the participation of Vista Equity Partners, General Catallyst, Emergence Capital, Nvidia, March Capital, Sook-seok and Sventnel Onee.
Just about 16 months ago, Together AI just completed the $305 million B round of finance, valued at $3.3 billion. Further, in 2023, the company completed the $102.5 million A round of financing, which was led by Kleiner Perkins, and involved Nvidia and Emergence Capital.
The company claims the annualized bookings are over $1.15 billion.
The company disclosed that its annualized bookings had exceeded $1.15 billion by the previous quarter. It was mentioned that a growing number of enterprises were beginning to use lower-cost open-source models through Together AI, such as AI neocloud service providers, rather than placing all AI needs on more priced closed-source frontier models.
Together AI also states that the use of open source models in the industry has increased threefold over the past year and is supported by the study by the AI Gateway Company OpenRouter. The company indicated that there were currently thousands of paid customers, including Cursor, Cognition and Decagon.
Recent intensive financing by similar companies
The so-called neocloud is usually a cloud service provider that provides hardware clusters and infrastructure tools for AI, and core resources often include computing facilities such as the Nvidia GPU cluster. As the demand for training, reasoning and model deployment increases, such companies have continued to receive wind support in recent months.
Of these companies, Upscale AI completed a total of $500 million last month for round A and extension finance, valued at $2 billion; and Tensorwave, the leading MMD GPU cluster, completed round B financing of $350 million last month, valued at $1.55 billion.
Additional information:TechCrunch reported that TogetherAI was once sought in March of this year for $1 billion in financing, with an estimated value of $7.5 billion; this actual completion was lower than anecdotal, but the final valuation was higher than market news at the time.