Together AI, the AI infrastructure provider that rents out Nvidia GPU clusters, has closed an $800 million Series C at an $8.3 billion valuation, the company announced Wednesday.
The round was led by Aramco Ventures, with Vista Equity Partners, General Catalyst, Emergence Capital, Nvidia, March Capital, Pegatron, and SentinelOne’s S Ventures all joining. Together AI last raised a $305 million Series B at a $3.3 billion valuation about 16 months ago — its price tag has more than doubled.
The San Francisco-based company now claims annual bookings exceeding $1.15 billion as of the last quarter. Its pitch is straightforward: companies are turning to open-source models hosted on neocloud infrastructure rather than paying premium token prices for closed frontier models. Together AI says open-source model usage has tripled across the industry in the past year, naming Cursor, Cognition, and Decagon among its thousands of paying customers.
The neocloud sector is on a tear. Upscale AI raised $500 million at a $2 billion valuation last month. TensorWave, focused on AMD GPU clusters, pulled in $350 million at $1.55 billion.
Analysis
Nvidia’s continued participation in Together AI’s rounds — it has invested in all three — signals something structural: the chip giant is hedging against concentration risk by cultivating alternative distribution channels for its GPUs. If hyperscalers like AWS and Google build their own silicon, neoclouds become Nvidia’s insurance policy. The $800 million figure is notable for what it didn’t hit. The Information reported Together was seeking $1 billion at $7.5 billion in March. Taking less money at a higher valuation suggests terms shifted in the company’s favour. The bet: open-source models keep closing the capability gap with proprietary systems, and Together AI owns the rails they run on.
