DigitalOcean is acquiring Paperspace, a provider of cloud infrastructure as a service with a focus on graphics processing units (GPUs). This strategic move aims to strengthen DigitalOcean’s offerings and enable customers, particularly small and medium-sized businesses (SMBs) and startups, to leverage artificial intelligence and machine learning (AI/ML) applications more easily. By integrating Paperspace’s advanced technology into its platform, DigitalOcean will expand its cloud services and provide GPU capabilities that were previously limited to larger enterprises.
The demand for AI/ML cloud solutions is growing rapidly, making Paperspace a valuable addition to DigitalOcean’s portfolio. Paperspace’s customers will gain access to a broader range of cloud services through DigitalOcean’s platform. They will also benefit from DigitalOcean’s extensive documentation, tutorials, and support system, which will assist them in building and deploying AI applications. On the other hand, DigitalOcean’s customers, who are exploring or already building AI/ML applications, will now be able to harness the power of GPUs alongside their existing CPU workloads.
Under the terms of the transaction, DigitalOcean acquired Paperspace for $111 million in cash. While the acquisition is expected to have an immaterial impact on DigitalOcean’s 2023 financial results,