UK-based GPU cloud services startup NexGen Cloud has raised $45m (£35m) in its Series A funding round to bolster its AI infrastructure platform for European enterprises.

The company announced the funding on LinkedIn, revealing that the round was supported by a group of family trusts and high-net-worth individuals, though their identities were not disclosed.

Founded in 2020, NexGen Cloud initially provided cloud infrastructure for blockchain applications before pivoting to artificial intelligence.

Now operating as a GPU-as-a-Service provider, it enables customers to access high-performance computing resources required for AI training and inference.

Rather than owning its own data centres, NexGen Cloud has established long-term agreements with major hyperscalers to access GPU resources.

These are offered to customers on-demand through the company’s Hyperstack platform, which includes infrastructure services and consulting support for AI project planning.

Describing itself as an “AI factory,” the company reported a significant revenue increase, growing from $3m in 2023 to more than $70m by the end of 2024.

According to NexGen Cloud, revenue from its AI cloud operations increased by 380% in the past year. Its client base now includes more than 10,000 organisations, including Red Hat, Ingenix.AI, and ArchiLabs.

The company operates within a sector expected to see significant growth. Industry forecasts from SNS Insider estimate the global GPU-as-a-Service market will rise from $3.3bn to over $34bn by 2032.

Despite competition from firms such as Vultr, Akamai Technologies, and Lambda Labs, NexGen Cloud believes its European base provides a competitive edge.

It aims to serve companies with heightened concerns over data privacy and regulatory compliance, positioning itself as a “sovereign AI infrastructure provider.”

The company offers AI workload support on dedicated virtual machines within local data centres to address data security concerns.

With the new funding, NexGen Cloud plans to invest around half in expanding its GPU capacity and allocate the remainder to advancing its platform development. This includes the launch of a Fine Tuning-as-a-Service offering, team expansion, and potential acquisitions.

NexGen Cloud co-founder and chief strategy officer Youlian Tzanev in an interview with Forbes said the company sees demand for accessible and straightforward cloud solutions.

“It has been something of a monopolistic market, dominated by a handful of giant US technology companies,” Tzanev said. “But now, people are exploring other options.”