The demand for AI and machine learning (ML) solutions has seen an unprecedented surge across industries. For example, the ML market, a segment within the AI market, is expected to experience exponential growth, reaching an estimated worth of nearly $2 trillion by 2030, according to MarketSplash.

Organizations realize the transformative potential of AI/ML technologies; however, the need for robust cloud infrastructure to support these advanced workloads is key. To harness the true potential of AI/ML, organizations require scalable and agile computing infrastructure capable of handling the intricate computations involved in training and deploying AI models. This demand has given rise to specialized AI/ML cloud solutions offered by cloud service providers.

DigitalOcean recognizes this need and has taken a significant stride in the AI/ML arena with its recent acquisition of Paperspace.

Paperspace, a provider of cloud infrastructure-as-a-service specializing in highly scalable applications utilizing GPUs, brings advanced technology that will now be integrated into the DigitalOcean platform. The acquisition aims to empower customers with streamlined access to AI/ML tools, bridging the gap between SMBs and the AI/ML capabilities traditionally associated with large enterprises.

With its self-serve model and efficient go-to-market strategy, DigitalOcean has established itself as a reliable provider of simplified cloud technologies. By incorporating Paperspace's GPU-powered infrastructure and AI/ML-focused software stack, DigitalOcean expands its serviceable market and presents cross-sell and upsell opportunities for both entities. The integration will leverage DigitalOcean's mature platform, efficient marketing engine, and extensive customer base to drive growth and unlock a surplus of possibilities of AI/ML for developers and businesses.

"DigitalOcean is renowned for simplifying complex cloud technologies and making them more accessible to developers and business alike,” said Dillon Erb, co-founder and CEO of Paperspace. “We believe there is no better company to unlock the endless possibilities of AI/ML for developers and businesses alike."

The acquisition also marks a milestone in DigitalOcean's journey to revolutionize how SMBs and startups harness the power of the cloud and AI/ML. By combining their offerings, the two companies aim to enable customers to focus more on building applications and growing their businesses while relying on the infrastructure powering them.

“This acquisition marks a significant milestone in DigitalOcean's journey to revolutionize how SMBs and startups harness the power of the cloud and AI/ML for their applications and businesses,” said Yancey Spruill, CEO of DigitalOcean. “The combined offerings allow customers to focus more on building applications and growing their businesses and less on the infrastructure powering them.”

Under the terms of the transaction, DigitalOcean acquired Paperspace for $111 million in cash, with an expected immaterial impact on 2023 financial results. This strategic move reinforces DigitalOcean's commitment to customer success, fostering innovation, enhancing customer experiences, and solidifying its position as a key player in cloud computing.