The artificial intelligence sector is booming, but behind the scenes, companies are wasting vast amounts of expensive computing power. Graphics processing units sit idle, workloads are over-provisioned, and cloud costs continue to climb. ScaleOps believes the core problem is not a shortage of resources, but widespread mismanagement.
The startup builds software that automatically manages and reallocates computing resources in real-time. It recently announced it has raised 130 million dollars at an 800 million dollar valuation. This Series C funding round was led by Insight Partners, with participation from existing investors Lightspeed Venture Partners, NFX, Glilot Capital Partners, and Picture Capital. The company states its software can reduce cloud and AI infrastructure costs by as much as 80 percent.
ScaleOps was co-founded in 2022 by Yodar Shafrir, a former engineer at the GPU orchestration startup Run:ai. His experience there showed him how difficult it was for companies to manage increasingly complex AI workloads. While tools like Kubernetes help run applications across large clusters of machines, they often rely on static configurations that struggle to keep up with fast-changing demand. This leads to underused GPUs, performance issues, and costly inefficiencies.
As CEO, Shafrir explained that during his prior role he met many customers, especially DevOps teams, who still struggled to manage production workloads as inference became more common. He realized the problem extended beyond GPUs to compute, memory, storage, and networking. The same patterns kept repeating, with teams failing to manage resources efficiently. DevOps teams often found themselves chasing multiple stakeholders to resolve issues, with most existing tools only offering visibility into problems without delivering actual solutions. This gap revealed a significant market opportunity.
ScaleOps connects application needs with infrastructure decisions in real time, providing a fully autonomous solution that manages infrastructure end-to-end. Shafrir noted that while Kubernetes is a great, flexible system, its heavy reliance on static configurations is the problem. Modern applications are highly dynamic, requiring constant manual work. What is needed is a system that understands the context of each application—what it needs, how it behaves, and how the environment is changing.
There are several other players in this space. While many companies have introduced automation tools, they often operate without full context, which can lead to performance issues and downtime, limiting trust among teams running production environments.
The startup says its platform was built specifically for production from the ground up. It is fully autonomous, context-aware, and works without manual configuration—capabilities the company believes differentiate it from competitors.
The New York-headquartered company serves enterprise customers globally, particularly those operating Kubernetes-based infrastructure, with a footprint spanning large organizations and companies across Europe and India. Its platform is used by a range of enterprise clients including Adobe, Wiz, DocuSign, Salesforce, and Coupa.
This Series C funding comes roughly a year and a half after ScaleOps raised 58 million dollars in a Series B round. Since then, the team has seen strong demand for autonomous solutions to manage cloud infrastructure, and Shafrir says the company is still in the early stages of its growth. Its total funding is approximately 210 million dollars.
ScaleOps reports it has seen more than 450 percent year-over-year growth and has tripled its headcount over the past twelve months, with plans to more than triple it again by year-end. With the new capital, the company plans to roll out new products and expand its platform. As AI drives demand for compute, managing that infrastructure is becoming increasingly critical. The startup said it will continue building toward fully autonomous infrastructure.