The neocloud race is accelerating fast, and Together AI just pulled ahead of the pack.
The company, which rents out Nvidia GPU clusters and AI infrastructure to businesses, announced an $800 million Series C at an $8.3 billion valuation — more than doubling its $3.3 billion valuation from just 16 months ago. Aramco Ventures led the round, joined by Vista Equity Partners, General Catalyst, Emergence Capital, Nvidia, March Capital, and others.
The numbers are striking. Together AI says annual bookings have crossed $1.15 billion, driven by a surge in companies adopting open source AI models through neocloud providers instead of paying premium pricing for closed frontier models. The company claims open source model usage has tripled across the industry in the past year, citing data from AI gateway OpenRouter.
This round was rumored back in March, when The Information reported Together AI was seeking $1 billion at a $7.5 billion valuation. The final deal — less money at a higher valuation — suggests the company secured better terms than initially pursued, a sign of strong investor demand for AI infrastructure plays.
Together AI’s customer list includes Cursor, Cognition, and Decagon among its thousands of paying clients. The company was co-founded by Vipul Ved Prakash, who previously sold Topsy to Apple for a reported $200+ million, alongside Stanford professor Percy Liang and ETH Zürich professor Ce Zhang.
The broader neocloud market is heating up fast. Upscale AI raised $500 million at a $2 billion valuation last month. TensorWave, which focuses on AMD GPU clusters, raised $350 million at a $1.55 billion valuation. Together AI’s latest raise signals that investors are betting big on infrastructure providers that offer cost-effective access to AI compute — and that the boom shows no signs of slowing down.
Source: TechCrunch
