Cast AI Secures $108M Series C to Optimize Cloud Workloads for AI and Kubernetes

Cast AI, a startup based in Miami, Florida, with significant European operations, has secured a $108 million Series C funding round. The investment, led by G2 Venture Partners and SoftBank Vision Fund 2, values the company at nearly $900 million, marking a substantial jump from its $300 million valuation in November 2023. This round, which is oversubscribed, includes participation from Aglaé Ventures, Hedosophia, Cota Capital, Vintage Investment Partners, Creandum, and Uncorrelated Ventures. Yuri Frayman, Cast AI's CEO and co-founder, emphasized that the company's primary focus is on optimizing GPU, compute, and energy efficiency. With a growing number of organizations facing challenges in managing the resource-intensive processes required for AI model training and deployment, Cast AI’s technology offers a solution by analyzing cloud and on-premise capacity to achieve the optimal cost-performance balance. According to Cast AI’s research, average utilization rates for CPUs, memory, and GPUs are alarmingly low, at just 10%, 23%, and similar levels, respectively. This inefficiency translates into significant cost and resource overheads. Cast AI has developed integrations with major cloud providers and other technologies commonly used by enterprises, enabling seamless workload distribution. The company has rapidly expanded its customer base over the past three years, amassing 2,100 clients. Notable users include Akamai, BMW, FICO, HuggingFace, NielsenIQ, and Swisscom, all of which leverage Cast AI to manage and optimize their computational needs. The new funding will be directed towards both research and development and market expansion, particularly in key regions like the United States. Frayman highlighted the company’s strategic partnerships and its role in major infrastructure projects. For instance, Cast AI is collaborating with Crusoe Energy and is integrated into their stack, aiming to enhance efficiency in AI data centers. Additionally, the startup is part of the Stargate AI infrastructure project in the U.S., alongside OpenAI, SoftBank, Oracle, and others, and is supporting the development of AI services in Japan through a partnership with OpenAI and SoftBank. While Cast AI’s current momentum and funding are largely driven by the AI boom, the company’s roots trace back to earlier technological innovations. Frayman and his co-founders, Leon Kuperman and Laurent Gil, have a history in software development and cloud optimization. In 2006, they founded Viewdle, one of the earliest machine learning startups, which utilized Nvidia GPUs for image search classifiers. This venture was later acquired by Google. Following Viewdle, they launched Zenedge, a cloud-based cybersecurity startup, which faced similar issues in managing cloud costs efficiently. Zenedge was eventually acquired by Oracle, further solidifying the team's expertise in scalable cloud solutions. Cast AI initially focused on Kubernetes workloads, providing tools to optimize cloud resources for containerized applications. Despite the "AI" in its name, the company’s early efforts were centered on improving cloud efficiency. However, the recent surge in AI adoption has shifted the company’s focus towards addressing the unique challenges of AI workloads. This pivot aligns well with the growing demand for solutions to manage the escalating costs associated with AI and other high-compute tasks. Industry insiders view Cast AI as a pivotal player in the cloud optimization space. Tim Yap, investment director at SoftBank Investment Advisers, noted that "Cast AI is setting a new standard for cloud efficiency at a time when infrastructure demands are surging." Carl Fritjofsson, general partner at Creandum, added, "Right now in the world, everyone is talking about AI agents. Cast was an AI agent before we started talking about that technology, you know. They’ve just been building this type of automation for a long time." Cast AI’s ability to navigate the complex landscape of cloud and AI infrastructure with agility and innovation has not gone unnoticed. The company’s deep roots in machine learning and cloud optimization, combined with its strategic partnerships and robust customer base, position it as a significant force in the tech industry. As the need for efficient AI resource management continues to grow, Cast AI is poised to play a crucial role in shaping the future of cloud computing and AI infrastructure.