Together AI $800 Million Funding Round Fuels Open-Source AI Cloud Platform Growth
Together AI has raised $800 million in a Series C funding round led by Aramco Ventures, pushing the company's post-money valuation to $8.3 billion. The San Francisco-based startup, founded in 2022, operates a cloud infrastructure platform designed to help businesses train and deploy open-source AI models at scale.
The funding round includes participation from Vista Equity Partners, General Catalyst, Emergence Capital, Nvidia, March Capital, Pegatron, and SE Ventures, among others. Together AI was valued at $3.3 billion during its Series B round in February 2025, meaning the new round more than doubles that figure.
Open-Source Momentum
Together AI's growth reflects a broader industry shift toward open-source models. The company reports that usage of open-source models on its platform has tripled over the past twelve months, and its annual bookings surpassed $1.15 billion in the most recent quarter. The platform supports models including DeepSeek, MiniMax, and Kimi, offering businesses a cost-effective alternative to closed systems from providers like OpenAI and Anthropic.
One of Together AI's customers, Decagon, reported that moving workloads to the platform cost one-fifth to one-seventh of what closed models charged, representing a fivefold to sevenfold reduction in inference costs.
Infrastructure Expansion
Together AI Co-Founder and CEO Vipul Ved Prakash outlined plans to use the fresh capital to expand product features and scale infrastructure capacity. In addition to the equity financing, the company secured commitments for over 500 megawatts of compute capacity, which will be capitalized independently by investors to support anticipated growth.
The company counts Cursor, Cognition (known for its Devin AI coding agent), and Decagon among its thousands of paying customers. The steady influx of enterprise clients suggests that the open-source AI infrastructure market is maturing rapidly.
Strategic Implications
The $8.3 billion valuation places Together AI among the larger independent AI infrastructure providers, competing indirectly with cloud hyperscalers while offering specialized services for open-source model deployment. The involvement of Nvidia as an investor signals the chipmaker's interest in expanding the ecosystem around its hardware beyond the dominant closed-model providers.
For decision-makers evaluating AI infrastructure options, the Together AI case illustrates that open-source models can deliver competitive performance at significantly lower cost, and the capital now flowing into dedicated deployment platforms is accelerating that shift.
AI-generated image.
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