ScaleOps secures $130 million at a valuation exceeding $800 million.

      The startup, which operates out of New York and Israel, was established by a former Run:ai engineer and professional triathlete. It has experienced over 350% growth year-on-year and has notable customers such as Adobe, Wiz, DocuSign, and Salesforce. Insight Partners spearheaded the Series C funding round.

      ScaleOps has secured $130 million in Series C funding, achieving a valuation exceeding $800 million, with Insight Partners leading the round alongside contributions from existing investors: Lightspeed Venture Partners, NFX, Glilot Capital Partners, and Picture Capital. This funding round brings the total investment to $210 million and includes a secondary transaction worth tens of millions of dollars, enabling employees to cash in on some of their equity. The company has grown by over 350% annually and counts Adobe, Wiz, DocuSign, Salesforce, and Coupa among its enterprise clients.

      ScaleOps develops software that tackles a deceptively challenging task: it autonomously manages Kubernetes infrastructure in real time. Kubernetes serves as the container orchestration system for the majority of contemporary cloud applications and excels at its intended purpose. However, it was designed for an environment characterized by relatively stable workloads.

      Today, with AI models being utilized constantly, traffic patterns changing rapidly, and GPU demand fluctuating unpredictably, the static resource configurations that Kubernetes depends on become ineffective. Engineering teams frequently engage in continual manual adjustments to prevent performance failures or excessive costs, a challenge that becomes unmanageable when overseeing hundreds or thousands of workloads simultaneously. ScaleOps automates this manual effort through continuous and context-aware adjustments, optimizing compute and GPU resources without the need for human input.

      Yodar Shafrir, the CEO and co-founder, approached this issue from a unique perspective. Before establishing ScaleOps in 2022, he worked as an engineer at Run:ai, a GPU orchestration firm acquired by Nvidia. His background as a professional triathlete representing Israel for 15 years and winning national titles also suggests a methodical approach to a problem often overlooked by competitors.

      The company was founded just before the AI infrastructure expansion made this challenge impossible to disregard. With AI compute demand growing at triple-digit rates annually and many enterprises still relying on pre-AI infrastructure management tools, the timing has favored ScaleOps' strategy.

      The platform encompasses Kubernetes pod rightsizing, replica optimization, node management, spot instance optimization, and increasing capabilities in GPU and AI model resource management. It is available on AWS Marketplace, Azure Marketplace, and Google Cloud Marketplace, and is compliant with FIPS for FedRAMP-regulated environments. The company employs over 120 staff members across Israel, North America, and Europe, having tripled its workforce in the past year, with plans to triple again by the end of the year.

      Competitors in this sector include Cast AI, Kubecost, and Spot, though Shafrir contends that most automation tools still lack full application context, which leads to performance issues in production and diminishes trust from enterprises.