CAST AI Raises $35 Million Series B to Help Companies Cut Cloud Costs by 50% or More

Following a $20 million investment round in March, the new funding will further expand the capabilities of
CAST AI’s Kubernetes cost optimization platform

CAST AI, the leading Kubernetes cost optimization platform, today announced that it has closed a $35 million Series B round from Vintage Investment Partners and existing investors Creandum and Uncorrelated Ventures. The new funding follows a $20 million investment round led by Creandum in March, bringing the company’s total funding raised to $73 million and underscoring the company’s strong growth and increasing demand for its platform. CAST AI was also recently named a Cool Vendor in the 2023 Gartner Cool Vendors™ in Cloud That Drive Business Disruption report.

Running applications in the cloud is complex and expensive. Costs will continue to rise as legacy applications are modernized and migrated to the cloud, and new use-cases emerge – like companies that have started running and training AI models that demand specialized GPUs and require billions of computations per second and petabytes of data. For enterprises training and running their own large language models, the resulting cloud bill can cost as much as $700,000 a day to operate, as is the case for OpenAI’s infrastructure cost on Azure.

While some solutions offer basic capabilities that merely monitor clusters and make recommendations, CAST AI’s platform utilizes advanced Machine Learning Algorithms and Heuristics to automatically optimize clusters, saving customers 50% or more on their cloud spend, improving performance and reliability and boosting DevOps and engineering productivity.

“AWS, Google and Azure bills can significantly impact gross margins for businesses, leading to excessive financial stress. CAST AI has proven that this scenario can be entirely avoided by consistently slashing customers’ cloud spend,” said Vintage Investment Partners’ Barrel Kfir. “What is unique about CAST AI is that it has developed a robust platform that goes beyond monitoring and recommendations; it automatically optimizes customers’ cloud resources, supercharging their savings.”

“Every single person at CAST AI is relentlessly focused on helping customers slash their cloud spend by automating tasks that are best performed by machine learning systems,” said CAST AI Co-Founder and CEO Yuri Frayman. “That’s why customer growth continues to accelerate and we’ve recently welcomed marquee customers like Akamai and Yotpo. The new funding will further bolster customer savings and productivity as we expand our platform’s capabilities and automate even more aspects of Kubernetes.”

GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally, and COOL VENDORS is a registered trademark of Gartner, Inc. and/or its affiliates and are used herein with permission. All rights reserved. The GARTNER COOL VENDOR badge is a trademark and service mark of Gartner, Inc. and/or its affiliates and is used herein with permission. All rights reserved. Gartner does not endorse any vendor, product or service depicted in its research publications and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s Research & Advisory organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.