DigitalOcean snaps up Paperspace to enhance AI offerings

DigitalOcean snaps up Paperspace to enhance AI offerings Duncan is an award-winning technology industry analyst, specialising in cloud computing, blockchain, martech and edge computing.


DigitalOcean Holdings, a cloud for small and medium-sized businesses (SMBs) and startups, has acquired Paperspace, a provider of cloud infrastructure as a service for highly scalable applications leveraging graphics processing units (GPUs).

The acquisition and integration of Paperspace’s advanced technology into the DigitalOcean platform will extend DigitalOcean’s offerings, enabling customers to more easily test, develop and deploy artificial intelligence and machine learning (AI/ML) applications, augment and enhance existing AI/ML applications and utilise GPUs in ways that have predominantly been the domain of large enterprises.

The increasing demand for AI/ML cloud solutions makes Paperspace’s GPU-powered infrastructure and AI/ML focused software stack valuable additions to DigitalOcean’s portfolio. Like DigitalOcean’s approach to the cloud, Paperspace simplifies the AI/ML experience, enabling easy and cost-effective experimentation and production across various AI/ML use cases, such as generative media, text analysis and natural language understanding, recommendation engines, image classification and many others.

The acquisition benefits both organisations’ customers. Paperspace’s customers will now have access to a broader cloud services platform. Paperspace customers will also gain access to DigitalOcean’s extensive documentation, tutorials and support system to assist them in their journey to build and deploy AI applications. DigitalOcean customers exploring or already building AI/ML applications will now be able to leverage GPUs alongside their CPU workloads. Together, DigitalOcean and Paperspace will provide smaller businesses and startups with a comprehensive suite of cloud offerings, advanced networking, and the flexibility to harness both GPU and CPU capabilities as AI/ML technologies evolve and demand increases.

“We are excited to expand our portfolio tailored to the world’s SMBs and startups with simplified AI/ML offerings,” said Yancey Spruill, CEO of DigitalOcean. “This acquisition marks a significant milestone in DigitalOcean’s journey to revolutionise how SMBs and startups harness the power of the cloud and AI/ML for their applications and businesses. The combined offerings allow customers to focus more on building applications and growing their businesses and less on the infrastructure powering them.”

Paperspace will benefit from DigitalOcean’s highly effective self-serve model and efficient go-to-market strategy. The acquisition expands DigitalOcean’s serviceable market and presents cross-sell and upsell opportunities for both entities, leveraging DigitalOcean’s mature platform, efficient marketing engine and its extensive customer base to drive growth.

“DigitalOcean is renowned for simplifying complex cloud technologies and making them more accessible to developers and business alike,” said Dillon Erb, co-founder and CEO of Paperspace. “We are thrilled to join forces with DigitalOcean, as we believe there is no better company to unlock the endless possibilities of AI/Ml for developers and businesses alike.”

Importantly, the alignment in organisational history and culture between DigitalOcean and Paperspace will ensure a smooth integration process and a collaborative work environment. The two companies’ shared values and commitment to customer success will continue to foster innovation, enhance customer experiences, and reinforce both entities as industry leaders in cloud computing.

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