Baseten, a startup specialising in running AI models on cloud infrastructure, has successfully raised $75 million in funding, the company stated. The latest investment round places Baseten’s valuation at $825 million, highlighting strong investor confidence in AI-driven solutions beyond just large language model developers.

While tech giants like OpenAI, Anthropic, and xAI have recently secured billions in funding to power AI training with Nvidia GPUs, Baseten focuses on a crucial aspect of AI—deployment. Once AI models are trained on massive datasets, they need to be deployed effectively for real-world applications. This is where Baseten steps in, providing businesses with a streamlined way to run AI models at scale.

Cloud-Based Flexibility and Scalability

Rather than maintaining its own data centers, Baseten operates on cloud infrastructure provided by major players like Amazon and Google. Enterprise customers can also integrate their own infrastructure for added flexibility. By leveraging multiple cloud providers, Baseten ensures access to a larger pool of GPUs than any single provider can offer at a given time.
“In this market, the key differentiator is speed,” said Tuhin Srivastava, co-founder and CEO of Baseten. “We help companies deploy AI models without having to worry about reliability, security, or performance.”

Solving GPU Shortages and Deployment Challenges

Although companies can deploy AI models independently, sourcing enough Nvidia GPUs in specific regions remains a challenge, co-founder Amir Haghighat explained in an interview with CNBC. Cloud providers frequently put GPUs into maintenance mode, sometimes with little notice, which can disrupt AI model operations. Baseten ensures that its clients experience seamless deployment without interruptions.

Growing Demand for Cost-Efficient AI Solutions

Following the recent breakthrough from the Chinese AI lab DeepSeek—where models were trained at significantly lower costs compared to U.S. counterparts—efficiency in AI has become a priority. Recognising this trend, Baseten quickly integrated DeepSeek’s R1 reasoning model, which competes with OpenAI’s o1, offering high performance at a fraction of the cost. “There’s a surge of interest from companies looking to reduce expenses,” Srivastava noted. “Many businesses spending millions per quarter with OpenAI and Anthropic are now exploring cost-effective alternatives—and they’re turning to Baseten.”