US-based cloud infrastructure company Vultr has finalised a growth financing round at a $3.5bn valuation, led by LuminArx Capital Management and AMD Ventures.
While the privately held company did not disclose the exact amount of funding, CNBC reported that it secured $333m.
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The new equity financing will bolster Vultr’s global expansion in artificial intelligence (AI) infrastructure and cloud computing.
Currently, it has 32 cloud data centre regions across six continents.
Vultr, established in 2014, is recognised for providing low-cost virtual servers, offering graphics processing units (GPUs) from AMD and NVIDIA.
The demand for these GPUs has surged due to the rise of generative AI.
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By GlobalDataNVIDIA, a major player in the AI sector, has invested in specialist cloud providers such as CoreWeave.
AMD’s CPUs are also available through Vultr, alongside Intel‘s offerings.
Unlike some leading cloud providers, Vultr does not manufacture its own AI chips to compete with AMD or NVIDIA.
Vultr CEO J J Kardwell told CNBC: “We will never seek to build GPUs and compete with that layer.”
Kardwell also noted that AMD provides competitive pricing for the inference stage of AI model deployment, which is crucial for organisations scaling AI applications.
Typically, AI models are trained with extensive data and numerous GPUs before reaching the inference stage, where models interpret new data.
Kardwell added: “As we continue our global expansion, LuminArx’s collaborative, innovative approach and AMD’s strategic impact enable Vultr to further accelerate growth in AI infrastructure and cloud computing, creating the category-defining independent cloud infrastructure company.”
AMD senior vice president and chief strategy officer of corporate development Mathew Hein said: “Vultr’s deep experience delivering secure, compliant and scalable cloud infrastructure and their deployment of AMD Instinct accelerators positions them as an innovative cloud solutions provider.
“We share Vultr’s mission to empower enterprises and AI innovators with unparalleled access to high-performance compute for AI model development and deployment and are proud to support their growth.”
