ScaleOps raises $130 million to improve computing efficiency amid demand for artificial intelligence

AI may be booming, but behind the scenes, companies are wasting huge amounts of expensive computing. GPUs remain idle, workloads are overprovisioned, and cloud costs continue to rise. ScaleOps believes the problem is not shortages, but mismanagement.

The startup, which builds software that automatically manages and reallocates computing resources in real time, has raised $130 million at a valuation of $800 million, ScaleOps said Monday. The Series C funding round was led by Insight Partners, with participation from existing investors, including Lightspeed Venture Partners, NFX, Gillot Capital Partners and Picture Capital. The company says its software reduces cloud infrastructure and artificial intelligence costs by up to 80%.

ScaleOps was founded in 2022 by Yodar Shavrer, a former engineer at Run:ai, a GPU orchestration startup acquired by Nvidia, after seeing first-hand how difficult it was for companies to manage increasingly complex AI workloads. While tools like Kubernetes help run applications across large clusters of hardware, they often rely on static configurations that struggle to keep up with rapidly changing demand, leading to underutilized GPUs, performance issues, and costly inefficiency.

“As part of my role [at Run:ai]“I’ve met a lot of customers, especially DevOps teams,” Shafrir, who is the company’s CEO, told TechCrunch. “Even though 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 age of AI. As I scaled down, I realized the problem wasn’t just with GPUs. It extended to compute, memory, storage, and networking. The same patterns kept repeating. Teams were failing to manage resources efficiently.”

DevOps teams often found themselves chasing multiple stakeholders to solve problems, and more often than not, these efforts were unsuccessful. Most existing tools have provided a clear view of problems, but have stopped short of providing actual solutions. This gap revealed a huge market opportunity.

ScaleOps connects application needs to real-time infrastructure decisions and provides a fully autonomous solution that manages infrastructure from end to end, Schaffrer said.

“Kubernetes is a great system. It’s flexible and highly configurable. But that’s also the problem,” Schafer said. “Kubernetes relies heavily on static configurations. Applications today are very dynamic, which requires constant manual work across teams. You need something that understands the context of each application — what it needs, how it behaves, and how the environment changes.”

There are several players in this space, including Cast AI, Cubecost, and Spot. While many companies have introduced automation tools, they often operate without full context, which can lead to performance issues and even downtime, limiting trust between teams managing production environments, according to the CEO.

The startup says its platform is specifically designed for production from the ground up. It’s fully autonomous, context-aware, and works out of the box with no manual configuration required — capabilities that the company believes set ScaleOps apart from competitors.

The New York-headquartered company serves enterprise customers globally, particularly those running Kubernetes-based infrastructure, with a footprint spanning large enterprises as well as enterprises across Europe and India. ScaleOps says its platform is used by a 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 its Series B round in November 2024. Since then, the team has seen strong demand for standalone solutions for cloud infrastructure management, Schaffrer said, adding that it is still in the early stages of its growth. The company’s total funding is about $210 million, according to a company spokesman.

ScaleOps said it has seen more than 450% year-on-year growth, and that it has tripled its headcount over the past 12 months, with plans to triple that number again by the end of the year.

With the new capital, ScaleOps plans to launch new products and expand its platform. As artificial intelligence drives demand for computing, managing that infrastructure becomes increasingly important. The startup said it will continue building toward fully autonomous infrastructure.