Together AI raises $800M at $8.3B, more than doubling its value in 16 months
Together AI raised an $800M Series C led by Aramco Ventures at an $8.3B valuation, up from $3.3B 16 months earlier, with annual bookings now topping $1.15B. The neocloud model — renting Nvidia clusters to serve cheap open-source models, as customers like Cursor and Cognition do — is pulling real capital as open-model usage tripled industry-wide in a year, undercutting the token premiums on closed frontier models.
Source: techcrunch.com ↗
companies increasingly adopt competent yet far less expensive open source models via neocloud providers like Together AI
Together AI
Why this matters
- → Open-source models now economically viable alternative to expensive closed APIs
- → Industry adoption tripled in one year, forcing frontier model pricing pressure
- → GPU infrastructure plays becoming critical capex layer in AI stack
Open models strike back