DigitalOcean acquires Paperspace for $111M in cash

DigitalOcean has acquired Paperspace, a provider of cloud infrastructure as a service for highly scalable applications leveraging graphics processing units, or GPUs. The acquisition and integration of Paperspace’s advanced technology into the DigitalOcean platform will extend DigitalOcean’s offerings, enabling customers to more easily test, develop and deploy artificial intelligence and machine learning applications, augment and enhance existing AI/ML applications and utilize GPUs in ways that have predominantly been the domain of large enterprises. Under the terms of the transaction, DigitalOcean acquired Paperspace for $111M in cash. The acquisition is expected to have an immaterial impact on 2023 financial results. “Paperspace is a rapidly growing business with leading edge technology that significantly accelerates our AI/ML capabilities. We expect it to enhance our revenue growth in 2024 and beyond and we will invest commensurately to further accelerate its growth and take full advantage of this tremendous emerging market opportunity,” said Matt Steinfort, DigitalOcean’s CFO. On its Q2 2023 earnings call on August 3, DigitalOcean will share more details on the strategic benefits of the acquisition and update the company’s financial outlook for 2023.