PaleBlueDot AI, a Silicon Valley-based cloud platform offering scalable unified graphics processing unit clusters across the globe for artificial intelligence inference and long-duration workloads, announced Wednesday that it has raised $150 million in early-stage funding.
B Capital led the Series B round of financing, valuing the company at more than $1 billion.
PaleBlueDot focuses on an audience of both startups in need of dynamic space in cloud computing across the globe and enterprises that require consistent access. The company has scored a growing global footprint of customers across the globe in North America, Japan, Korea and Southeast Asia, maintaining predictability and speed for AI compute across all regions.
The company has particularly expanded its capabilities overseas to markets where restrictions from North America, such as the United States, have hindered Chinese AI growth, including tariffs on AI chips. According to Reuters, one of the company’s clients is Xiaohongshu, the popular Chinese social media platform also known as RedNote, noted people familiar with the matter.
“AI is transitioning from language interfaces to operational systems that execute tasks and integrate directly into real-world workflows,” said Chief Executive Stephen Watts.
Watts said the company is dedicated to building AI compute and meeting the evolving inference needs of global customers and recognizing that global adoption depends on compute that can scale economically. AI is the technology driving the modern era, he argued, and it’s becoming foundational to how companies operate.
In early 2025, PaleBlueDot launched an AI cloud agent called Dot-1.1, allowing for the deployment of AI models, including DeepSeek’s R1, while reducing inference costs for customers.
The company’s other main business includes designing large-scale GPU clusters for enterprise customers. This includes colocation in data centers run by firms such as Digital Reality Trust Inc. and Equinix Inc.
PaleBlueDot sits solidly in the “neocloud” infrastructure industry, where it operates a specialized alternative to AI computing enterprise hyperscaler offerings such as Amazon Web Services Inc., and Microsoft Corp.’s Azure by providing a flexible, globe-spanning marketplace. Similarly positioned neocloud companies include CoreWeave Inc., Lightning AI and Lambda Labs Inc.
The company said the new financing will be used to invest in the core platform engineering and technical talent to enhance its cloud architecture and AI cloud agent. It will also expand its go-to-market capabilities and support its global expansion to scale operations with the intent to meet growing enterprise demand for AI compute.
Image: Pixabay
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