AI could also be booming, however behind the scenes, firms are losing huge quantities of pricey compute. GPUs sit idle, workloads are over-provisioned, and cloud prices proceed to climb. ScaleOps believes the issue isn’t a scarcity — it’s mismanagement.
The startup, which builds software program that routinely manages and reallocates computing assets in actual time, has raised $130 million at an $800 million valuation, ScaleOps stated Monday. The Series C funding spherical was led by Insight Partners, with participation from current traders, together with Lightspeed Venture Partners, NFX, Glilot Capital Partners, and Picture Capital. The firm says its software program reduces cloud and AI infrastructure prices by as a lot as 80%.
ScaleOps was co-founded in 2022 by Yodar Shafrir, a former engineer at Run:ai, a GPU orchestration startup acquired by Nvidia, after seeing firsthand how tough it was for firms to handle more and more advanced AI workloads. While instruments like Kubernetes assist run purposes throughout giant clusters of machines, they usually depend on static configurations that battle to sustain with fast-changing demand, main to underused GPUs, efficiency points, and dear inefficiencies.
“As part of my role [at Run:ai], I met many customers, especially DevOps teams,” Shafrir, who’s the corporate’s CEO, instructed TechCrunch. “While they really liked what Run:ai provided, they still struggled to manage their production workloads, especially as inference workloads became more common in the AI era. When I zoomed out, I realized the problem wasn’t just GPUs. It extended to compute, memory, storage, and networking. The same patterns kept repeating; teams were failing to manage resources efficiently.”
DevOps groups usually discovered themselves chasing down a number of stakeholders to resolve points, and too usually, these efforts fell quick. Most current instruments supplied visibility into issues, however stopped in need of delivering precise options. That hole revealed a major market alternative.
ScaleOps connects software wants with infrastructure choices in actual time and supplies a completely autonomous answer that manages infrastructure end-to-end, Shafrir stated.
“Kubernetes is a great system. It’s flexible and highly configurable. But that’s also the problem,” Shafrir stated. “Kubernetes relies heavily on static configurations. Applications today are highly dynamic, which requires constant manual work across teams. You need something that understands the context of each application — what it needs, how it behaves, and how the environment is changing.”
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There are a number of gamers on this house, together with Cast AI, Kubecost and Spot. While many firms have launched automation instruments, they usually function with out full context, which might lead to efficiency points and even downtime, limiting belief amongst groups operating manufacturing environments, in accordance to the CEO.
The startup says its platform was constructed particularly for manufacturing from the bottom up. It is absolutely autonomous, context-aware, and works out of the field with out requiring handbook configuration — capabilities the corporate believes differentiate ScaleOps from opponents.
The New York-headquartered firm serves enterprise prospects globally, significantly these working Kubernetes-based infrastructure, with a footprint that spans giant organizations in addition to firms throughout Europe and India. ScaleOps says its platform is utilized by a variety of enterprise shoppers, together with Adobe, Wiz, DocuSign, Salesforce, and Coupa.
The Series C funding comes roughly a yr and a half after ScaleOps raised $58 million in its Series B spherical in November 2024. Since then, the workforce has seen sturdy demand for autonomous options to handle cloud infrastructure, Shafrir stated, including that it’s nonetheless within the early levels of its development. The firm’s complete funding is about $210 million, in accordance to a spokesperson.
ScaleOps stated it has seen greater than 450% year-over-year development and that it has tripled its headcount over the previous 12 months, with plans to greater than triple it once more by year-end.
With the brand new capital, ScaleOps plans to roll out new merchandise and increase its platform. As AI drives demand for compute, managing that infrastructure is turning into more and more important. The startup stated it should proceed constructing towards absolutely autonomous infrastructure.
