Salesforce Eyes Investment in Nvidia Chip Reseller Together AI • – Contxto

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Salesforce Ventures is poised to lead this investment round, with contributions from Coatue Management, highlighting the strategic interest in Nvidia’s AI chip technology.


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The rapid escalation in Together AI‘s valuation across four funding rounds within a year and a half reflects the fervent market demand for Nvidia’s graphics processing units (GPUs). These chips are crucial for AI giants such as OpenAI, Meta Platforms, and Microsoft, propelling Nvidia’s stock to unprecedented levels despite forecasts of a potential decline in demand and chip prices.

Together AI’s revenue surge is attributed not only to its GPU reselling business but also to its innovative approaches to optimizing AI model operations and training, earning accolades from its clientele. Despite the funding round’s ongoing negotiations, this move by Salesforce Ventures and Together AI’s significant annualized revenue growth—from around $20 million to over $30 million in a few months—signals robust confidence in the AI sector’s potential.

This investment interest from Salesforce Ventures, known for backing AI-driven startups, into Together AI reflects a broader industry trend of valuing AI startups at multiples far exceeding those of traditional software companies. However, the inherently lower gross margins of GPU reselling businesses, due to commitments to cloud providers and the need to maintain idle computing capacity, present operational challenges. Unlike other GPU resellers, Together AI distinguishes itself by offering bundled GPU services and software that enable more cost-effective AI model training and refinement.

Together AI’s strategic direction and innovations in conversational AI, exemplified by contributions to the development of advanced AI models like Mamba, demonstrate its pivotal role in advancing the AI technology frontier. As Salesforce Ventures leads this significant funding round, Together AI stands at the forefront of addressing the critical demand for Nvidia’s GPUs in the AI development landscape, signaling a promising trajectory for the burgeoning startup and the broader AI ecosystem.

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