ScaleOps Raises $130M to Streamline IT Infrastructure Management
In the booming world of artificial intelligence (AI), one recurrent issue lurks behind the scenes: the waste of valuable computing resources. From unused GPUs to overprovisioned workloads, and ever-rising cloud costs, companies are grappling with challenges that are not necessarily a result of resource shortage but due to inadequate management. This is the position of ScaleOps, a startup committed to changing the narrative.
As announced on Monday, ScaleOps, which develops software to automatically manage and reallocate IT resources in real-time, has successfully raised $130 million in a Series C funding round. This recent investment has propelled the company’s valuation to $800 million. The round was led by Insight Partners, and saw participation from other existing investors such as Lightspeed Venture Partners, NFX, Glilot Capital Partners, and Picture Capital. ScaleOps posits that its software can reduce cloud and AI infrastructure costs by up to 80%.
The Genesis of ScaleOps
The startup was co-founded in 2022 by Yodar Shafrir, an ex-engineer at Run:ai, a GPU orchestration startup that was eventually acquired by Nvidia. Shafrir noticed the difficulties companies encountered in managing the escalating complexity of AI workloads. While tools like Kubernetes assist in running applications on large clusters of machines, they primarily rely on static configurations that struggle to adapt to swiftly altering demands. This results in underutilized GPUs, performance glitches, and expensive inefficiencies.
In a discussion with TechCrunch, Shafrir, now the CEO of ScaleOps, recounted his experiences at Run:ai. He observed that while customers appreciated Run:ai’s offerings, they still had difficulties managing their production workloads, particularly with the rise of inference workloads in the AI era. Upon closer scrutiny, Shafrir realized that the problem extended beyond GPUs, affecting computing, memory, storage, and networking. The recurring pattern was that teams failed to manage resources effectively.
ScaleOps’ Solution to Inefficient Resource Management
A common challenge for DevOps teams has been the necessity to seek multiple stakeholders to resolve issues, a strategy that was frequently unsuccessful. Existing tools were able to provide visibility into problems but were incapable of offering real solutions. This gap is what ScaleOps seeks to fill with its software.
ScaleOps’ software connects application needs with real-time infrastructure decisions, providing a fully autonomous solution that manages infrastructure end-to-end. Shafrir describes Kubernetes as a flexible and highly configurable system, but its heavy reliance on static configurations presents a problem. In an era where applications are highly dynamic, requiring constant manual work between teams, there is a need for a system that understands the context of each application: its needs, behaviour, and how the environment evolves. ScaleOps aims to fill this gap.
Image credits:Large-scale operations
How ScaleOps Differentiates Itself
ScaleOps faces competition from several players in the space, including Cast AI, Kubecost, and Spot. Many companies have introduced automation tools, but these often operate without full context, leading to performance issues or even downtime. This limitation negatively impacts the trust between teams running production environments. According to Shafrir, ScaleOps stands apart from its competitors because its platform was designed specifically for production from the outset. It is fully autonomous, context-aware, and works out of the box without requiring manual configuration.
What’s Next for ScaleOps?
Since its Series B round in November 2024, where it raised $58 million, ScaleOps has experienced strong demand for autonomous solutions to manage cloud infrastructure. The company, headquartered in New York, serves enterprise customers around the world, especially those operating Kubernetes-based infrastructure. Its platform is used by a range of enterprise customers, including Adobe, Wiz, DocuSign, Salesforce, and Coupa.
The company has experienced over 450% year-over-year growth and tripled its headcount over the past 12 months. With plans to triple it again by the end of the year, the new capital will be used to roll out new products and expand the platform. As AI continues to drive demand for computing, managing this infrastructure becomes increasingly critical, and ScaleOps plans to continue building fully autonomous infrastructure to meet this need.
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