AI may be booming, but behind the scenes, businesses are wasting vast amounts of expensive computing. GPUs are sitting idle, workloads are over-provisioned, and cloud costs continue to rise. At ScaleOps, we believe the problem is mismanagement, not scarcity.
The startup, which develops software to automatically manage and reallocate computing resources in real-time, has raised $130 million at a valuation of $800 million, ScaleOps announced Monday. The Series C funding round was led by Insight Partners with participation from existing investors including Lightspeed Venture Partners, NFX, Glilot Capital Partners, and Picture Capital. The company says its software reduces cloud and AI infrastructure costs by as much as 80%.
ScaleOps was co-founded in 2022 by Yodar Shafrir, a former engineer at Run:ai, a GPU orchestration startup acquired by Nvidia, after seeing first-hand how difficult it is for enterprises to manage increasingly complex AI workloads. Tools like Kubernetes help run applications across large clusters of machines, but they often rely on static configurations that struggle to keep up with rapidly changing demands, leading to underutilized GPUs, performance issues, and costly inefficiencies.
“As part of my role[at Run:ai]I met a lot of our customers, especially DevOps teams,” Shahril, the company’s CEO, told TechCrunch. “While they really liked what Run:ai offered, they were still struggling to manage their production workloads, especially as inference workloads became more common in the AI era. When we zoomed out, we saw that the problem wasn’t just about GPUs; it extended to compute, memory, storage, and networking. The same pattern was repeating, and teams weren’t managing their resources effectively.”
DevOps teams had to juggle multiple stakeholders to solve problems, and their efforts often fell short. Most existing tools provided the ability to visualize problems, but stopped short of providing actual solutions. This gap has revealed a huge market opportunity.
ScaleOps connects application needs and infrastructure decisions in real time, providing a fully autonomous solution to manage infrastructure end-to-end, Shahril said.
“Kubernetes is a great system. It’s flexible and highly configurable. But that’s also the problem,” Shahril said. “Kubernetes relies heavily on static configuration. Today’s applications are highly dynamic and require continuous manual effort across teams. You need something that understands the context of each application: what it needs, how it behaves, and how the environment is changing.”
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There are several players in this space, including Cast AI, Kubecost, and Spot. The CEO said that while many companies have deployed automation tools, they often operate without full context, can cause performance issues and even downtime, and limit trust among the teams running production environments.
The company says its platform was built from the ground up specifically for production. It is fully autonomous, context-aware, and works out of the box with no manual configuration required. The company believes this feature differentiates ScaleOps from its competitors.
Headquartered in New York, the company serves enterprise customers around the world, especially those operating Kubernetes-based infrastructure, including large organizations as well as enterprises in Europe and India. ScaleOps says its platform is used by a wide range of enterprise customers, including Adobe, Wiz, DocuSign, Salesforce, and Coupa.
The Series C funding comes about a year and a half after ScaleOps raised $58 million in a Series B round in November 2024. Since then, the team has recognized strong demand for autonomous solutions for managing cloud infrastructure, Shahril said, adding that the company is still in its early stages of growth. The company has about $210 million in total funding, a spokesperson said.
ScaleOps said the company is experiencing more than 450% year-over-year growth, has tripled its workforce in the past 12 months, and plans to more than triple its workforce by the end of the year.
With the new capital, ScaleOps plans to roll out new products and expand its platform. As AI increases the demand for computing, managing that infrastructure becomes increasingly important. The startup said it will continue building its fully autonomous infrastructure.
