DigitalOcean, a prominent player in the cloud hosting industry, has made a significant move by acquiring Paperspace. What is Paperspace? It’s a New York-based startup specializing in cloud computing and AI development. This acquisition, valued at $111 million in cash, reinforces DigitalOcean's position and expands its portfolio in the cloud computing space. It allows DigitalOcean to integrate Paperspace's infrastructure and tools into its existing products, empowering customers to easily test, develop, and deploy AI applications.
Paperspace's customers, on the other hand, will benefit from DigitalOcean's comprehensive suite of cloud services, including databases, storage, app hosting, documentation, tutorials, and robust support. It's worth noting that Paperspace will continue to operate as a separate business unit within DigitalOcean, ensuring a smooth transition for existing customers without any immediate changes to their service.
Paperspace, co-founded in 2014 by Daniel Kobran and Dillon Erb, emerged as a notable player in the cloud computing startup scene. Initially focusing on providing cost-effective virtual machines for design, visualization, and gaming in the cloud, the company adapted to the growing demand for AI and shifted its focus accordingly. It developed a suite of tools specifically tailored for developing, training, deploying, and hosting AI models in the cloud.
The acquisition of Paperspace represents DigitalOcean's latest strategic move in expanding its offerings and capturing the growing market for cloud AI and machine learning solutions. Previously, DigitalOcean acquired Cloudways, a Pakistani cloud hosting service provider, for $350 million in 2022. The acquisition of Paperspace marks DigitalOcean's fourth since its public listing in 2021, further solidifying its presence in the industry.
Paperspace faced challenges related to slow startup times, which impacted its customers' experiences. However, with DigitalOcean's extensive resources and expertise, it is expected that these issues will be addressed and resolved to deliver an enhanced user experience. By joining forces with DigitalOcean, Paperspace aims to create a comprehensive solution offering cloud CPU and GPU computing capabilities to rival other leading vendors in the public cloud market.
DigitalOcean CEO Yancey Spruill expressed enthusiasm about expanding their portfolio to cater to small- and medium-sized businesses (SMBs) and startups, delivering simplified AI and machine learning offerings. By leveraging the combined power of DigitalOcean and Paperspace, customers can focus on building applications and growing their businesses, rather than worrying about the underlying infrastructure.
DigitalOcean, headquartered in New York, is recognized for its expertise in simplifying complex cloud technologies, making them more accessible to developers and businesses alike. The company's commitment to providing developers with user-friendly cloud solutions has contributed to its success and popularity in the industry.
It is important to note that DigitalOcean offers credits, including the highly sought-after DigitalOcean credits, which allow developers and businesses to access their services at discounted rates or even for free. These credits are often utilized by startups and developers looking for cost-effective cloud computing solutions.
So, DigitalOcean's acquisition of Paperspace strengthens its position in the cloud computing market and bolsters its offerings in AI development. The integration of Paperspace's infrastructure and tools with DigitalOcean's products opens up new opportunities for customers to explore and leverage AI-driven applications. With the acquisition, DigitalOcean aims to provide simplified cloud solutions tailored to the needs of SMBs, startups, and developers, facilitating their growth and success in the digital landscape.