ScaleOps Raises $130 Million to Optimize AI Cloud

A Significant Funding Round for ScaleOps

In a context where artificial intelligence is experiencing exponential growth, companies often find themselves wasting valuable computing resources. GPUs, for example, frequently remain idle, while workloads are oversized, leading to a continuous increase in cloud costs. ScaleOps, an innovative startup, believes this issue stems from poor management rather than a shortage of resources.

The company recently raised $130 million, achieving a valuation of $800 million. This Series C funding round was led by Insight Partners, with participation from existing investors such as Lightspeed Venture Partners, NFX, Glilot Capital Partners, and Picture Capital. ScaleOps claims that its software can reduce cloud and AI infrastructure costs by up to 80%.

An Innovative Solution for Complex Challenges

ScaleOps was co-founded in 2022 by Yodar Shafrir, a former engineer at Run:ai, a startup specializing in GPU orchestration that was acquired by Nvidia. Shafrir noticed the difficulty companies face in managing increasingly complex AI workloads. While tools like Kubernetes help run applications on large clusters of machines, they often rely on static configurations that struggle to keep up with constantly changing demand. This results in underutilized GPUs, performance issues, and costly inefficiencies.

"In my role at Run:ai, I met many clients, particularly DevOps teams," Shafrir said. "While they truly appreciated what Run:ai offered, they still struggled to manage their production workloads, especially as inference workloads became more common in the AI era. Looking back, I realized that the problem wasn't limited to GPUs. It extended to computing, memory, storage, and networking. The same patterns repeated themselves; teams failed to manage resources effectively."

DevOps teams often found themselves needing to contact multiple stakeholders to resolve issues, and too often, these efforts failed. Most existing tools provided visibility into problems but did not offer concrete solutions. This gap revealed a significant market opportunity.

An Autonomous and Contextual Platform

ScaleOps connects application needs to infrastructure decisions in real-time and provides a fully autonomous solution that manages end-to-end infrastructure, Shafrir stated. "Kubernetes is a great system. It's flexible and highly configurable. But that's also the problem," he explained. "Kubernetes relies heavily on static configurations. Today's applications are very dynamic, which requires constant manual work between teams. You need something that understands the context of each application: what it needs, how it behaves, and how the environment evolves."

There are several players in this space, including Cast AI, Kubecost, and Spot. While many companies have introduced automation tools, they often operate without complete context, which can lead to performance issues and even downtime, limiting trust between teams managing production environments, according to the CEO.

The startup claims that its platform was designed specifically for production from the outset. It is fully autonomous, context-aware, and works immediately without requiring manual configuration—capabilities that the company believes differentiate ScaleOps from its competitors.

Global Expansion and Future Ambitions

The company, headquartered in New York, serves enterprise clients globally, particularly those operating Kubernetes-based infrastructure, with a footprint that extends to large organizations as well as businesses across Europe and India. ScaleOps states that its platform is used by a range of enterprise clients, including Adobe, Wiz, DocuSign, Salesforce, and Coupa.

The Series C funding comes about a year and a half after ScaleOps raised $58 million in its Series B round in November 2024. Since then, the team has seen strong demand for autonomous cloud infrastructure management solutions, Shafrir noted, adding that they are still in the early stages of their growth. The company's total funding now amounts to approximately $210 million, according to a spokesperson.

ScaleOps reported over 450% year-over-year growth and has tripled its workforce in the past 12 months, with plans to triple it again by the end of the year. With this new capital, ScaleOps aims to launch new products and expand its platform. As AI drives demand for computing, managing this infrastructure becomes increasingly critical. The startup stated that it will continue to build towards fully autonomous infrastructure.