Anyone familiar with GPUaaS industry?

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February 20, 2025

by a searcher from University of California, Berkeley in Atlanta, GA, USA

Do you know what’s the multiple for the industry?
Any thoughts on market consolidation and dynamics with latest US-investments on AI and industry development?

Would be happy to chat and share thoughts.

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Reply by a searcher
in Portland, OR, USA
Yeah, I’m pretty familiar with the GPUaaS industry. I use a ton of GPU processing time for training AI models, so I keep a close eye on pricing, availability, and how the market is shifting. Valuations are all over the place depending on the company. The big private GPU cloud players like CoreWeave are getting crazy valuations, around 11.5× revenue, while others like Lambda Labs are closer to 3.5×. Public cloud providers like DigitalOcean and AWS tend to sit in the 5 to 9× revenue range with around 20× EV/EBITDA, depending on their scale and profitability. The market is consolidating fast. The hyperscalers like AWS, Azure, and Google still dominate, but even they are struggling to get enough GPUs, so they are partnering with companies like CoreWeave. There have been some M&A moves, like DigitalOcean buying Paperspace and Atos acquiring Nimbix to expand GPUaaS capabilities. Meanwhile, companies like CoreWeave are raising billions to lock in supply, including a $7.5 billion debt financing just to buy more NVIDIA chips. It’s a wild space right now. Happy to chat more if you want to dive deeper!
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Reply by a searcher
from University of California, Berkeley in Atlanta, GA, USA
Thanks, would love to chat more. Will dm you to connect!
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