There was a flurry of industry interest in the first-ever funding round for cloud computing firm Vultr, which secured $333 million in new investment at a valuation of $3.5 billion.
The hat was passed around by LuminArx, the special situations fun, which managed to persuade AMD to part with cash.
Vultr plans to use the capital to enhance its global data centre network, currently 32 locations, and invest in graphics processing units (GPUs) from Nvidia and AMD, essential for supporting artificial intelligence applications.
Chief marketing officer Kevin Cochrane highlighted the importance of strategic partnerships with AMD and LuminArx in ensuring flexibility for future investments.
The investment reflects the growing demand for AI-driven infrastructure.
“Neocloud” companies like Vultr, CoreWeave, and Lambda Labs are attracting substantial backing as businesses seek alternatives to tech giants such as Google and Microsoft. Analysts estimate the AI chip market, dominated by Nvidia but with AMD gaining ground, could reach $276 billion by 2027.