Cast AI raises $108M to get the most out of AI, Kubernetes and other workloads
The ever-growing demands of traffic for training and running AI models have become a serious cost and resource challenge for many organizations. Cast AI, a startup focused on automating and optimizing workloads for AI and other tasks, is addressing this head-on. The company recently secured a significant funding round thanks to robust growth and strategic partnerships with major industry players.
An Impressive Funding Milestone
Cast AI has successfully raised $108 million in its Series C round. This capital injection will not only boost research and development but also support the company’s expansion into key markets, including the U.S. Industry insiders suggest this funding round now places the startup at a “near unicorn” valuation, reportedly nearing $900 million post-money.
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Driving Efficiency in Cloud and AI Infrastructure
According to Yuri Frayman, CEO and co-founder of Cast AI, “It’s all about GPU, compute, and electricity.” The company’s goal is to enhance efficiency and expand workloads across GPUs, ensuring that resource allocation is maximized. This focus is critical in a time when enterprises are grappling with limited processor availability needed for AI model training and operation.
Cast AI’s proprietary research indicates that, on average, only 10% of CPUs and 23% of memory are put to use. This inefficiency similarly impacts GPU usage. By integrating with all major cloud providers and additional customer tools, Cast AI helps businesses find the perfect balance between cost and performance.
Company Background and Global Reach
Although officially based in Miami, Florida, Cast AI has deep European roots. Much of its development takes place in countries like Lithuania, Poland, Romania, and Bulgaria. Over the last three years, the startup has attracted 2,100 customers, including well-known names such as Akamai, BMW, FICO, HuggingFace, NielsenIQ, and Swisscom.
Originally, Cast AI emerged from the founders’ experiences in managing soaring cloud costs during the scaling process. The initial product focus was on optimizing Kubernetes workloads, a service that remains central to the startup’s operations.
Strong Investor Confidence and Partnerships
The Series C round is led by G2 Venture Partners and SoftBank Vision Fund 2, with active participation from Aglaé Ventures, Hedosophia, Cota Capital, Vintage Investment Partners, Creandum, and Uncorrelated Ventures. During a recent oversubscribed round, Cast AI joined an elite portfolio alongside companies like OpenAI and Crusoe Energy. These alliances include collaborative projects involving major firms such as SoftBank and Oracle, emphasising the startup’s role in a larger AI infrastructure initiative in the U.S.
Frayman proudly shared that Cast AI already works closely with several key companies. He highlighted partnerships with Crusoe Energy, where the technology is integrated throughout their system, and with SoftBank to optimize efficiency in AI data centers. Moreover, Cast AI is part of an ongoing project with OpenAI and SoftBank to develop services in Japan.
Foundational Experience and Vision for the Future
Cast AI’s journey is deeply rooted in the founders’ rich history in technology and innovation. Yuri Frayman, originally from Ukraine, started in finance before transitioning to software development. His earlier venture, Viewdle, was one of the first machine learning startups that harnessed Nvidia GPUs for image search classification. That company eventually became part of Google.
In addition to Viewdle, Frayman and his co-founders later worked on a cloud-based cybersecurity startup called Zenedge, which was later acquired by Oracle. This experience directly influenced the creation of Cast AI, as it was born out of the necessity to manage escalating cloud costs effectively.
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Key Takeaways
- Cast AI has raised $108 million in Series C funding, reaching a near unicorn valuation.
- The startup focuses on optimizing resource usage in AI, Kubernetes, and cloud workloads.
- With partnerships across industry giants and a strong European development base, Cast AI is well positioned to meet rising infrastructure demands.
As companies across the globe continue to seek improvements in AI and Kubernetes efficiency, Cast AI is setting a new standard in cloud optimization. Tim Yap, investment director at SoftBank Investment Advisers, remarked that Cast AI is at the forefront of innovation at a time when infrastructure demands are at an all-time high. Likewise, industry veteran Carl Fritjofsson praised the company’s long-standing commitment to automation.
With its impressive funding, strategic partnerships, and a legacy of technological innovation, Cast AI is poised to play a critical role in shaping the future of AI and cloud efficiency.
For more insights on their offerings and research, visit the official site of Cast AI or check out their research on Kubernetes cost benchmark.
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