Prime Highlights
- Baseten has raised $1.5 billion in fresh funding, valuing the AI infrastructure company at $13 billion.
- The company plans to use the funds to expand computing capacity, software development and hiring.
Key Facts
- Baseten was co-founded by Australians and is based in California.
- Funding round valued the company at $13 billion.
Background
Baseten, an artificial intelligence infrastructure company co-founded by Australians, has secured $1.5 billion in a new funding round that values the business at $13 billion.
The investment was led by U.S.-based firms Sands Capital and Wellington Management. Australian venture capital firm Blackbird VC also participated in the round, describing it as the largest investment it has made in a single company.
Founded in California, Baseten provides software and infrastructure that allow businesses to build, customise and run their own artificial intelligence models. The company positions itself as a lower-cost alternative to major AI providers by helping organisations deploy AI systems more efficiently.
The newest funding shows that investors are still keen on firms that build the tooling and supporting infrastructure you need to help with the increasing uptake of artificial intelligence. Rather than developing consumer-facing AI products, Baseten focuses on the technology that powers AI applications behind the scenes.
The company said demand for its services has increased sharply over the past year, driven by growing use of AI models in business operations. Baseten reported that its revenue has grown significantly as more customers use its platform to run AI systems in real-world applications.
According to the company, the fresh capital will be used to expand its computing resources, improve software capabilities and recruit additional staff as it scales operations.
The funding round marks Baseten’s fourth capital raise in the past 18 months and reflects strong investor confidence in AI infrastructure businesses. Industry observers say companies that help organisations deploy and manage AI systems are attracting increasing attention as demand for generative AI continues to grow across sectors.