Paperspace

GPU Cloud / Infra

Paperspace, founded in 2014 and headquartered in the United States, is a cloud computing platform specializing in GPU-accelerated infrastructure for machine learning and AI workloads.

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Paperspace provides cloud-based GPU infrastructure and ML platform tools for developing, training, and deploying AI models.

Paperspace, founded in 2014 and headquartered in the United States, is a cloud computing platform specializing in GPU-accelerated infrastructure for machine learning and AI workloads. The company was acquired by DigitalOcean in July 2023, and its products have been integrated into DigitalOcean's broader AI-Native Cloud offering. Paperspace provides a suite of tools including Gradient for ML model development, training, and deployment, and Core for virtual GPU servers, with per-second billing and access to NVIDIA H100 GPUs.

As of Q1 2026, DigitalOcean reported $258 million in revenue (up 22% year-over-year), with AI Customer ARR growing 221% to $170 million and Million+ Dollar Customer ARR growing 179% to $183 million. The platform serves over 500,000 builders, from individual developers to enterprises, and is positioned as a simpler, more affordable alternative to major public clouds for AI inference and agentic workloads. In April 2026, DigitalOcean launched its AI-Native Cloud, integrating Paperspace's capabilities with new inference and agentic AI features, and acquired Katanemo Labs for agentic AI infrastructure.

The company has raised over $100 million in venture funding prior to acquisition, including a $10 million Series A in 2019 and a $30 million Series B in 2021. Paperspace's customer base includes startups and mid-market companies in AI, gaming, and 3D graphics, though specific named clients are not publicly disclosed. The integration into DigitalOcean has expanded its reach but also subsumed its brand identity, with Paperspace now marketed as a DigitalOcean product.

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Who buys this

  • AI/ML startups and individual developers building and fine-tuning models
  • Mid-market enterprises deploying inference and agentic AI workloads
  • 3D graphics and rendering professionals needing GPU compute
  • Academic researchers and data scientists requiring scalable GPU resources

Strengths and what to watch

Strengths

  • Cost-effective GPU compute with per-second billing, claiming up to 70% savings versus major public clouds
  • Deep integration with DigitalOcean's AI-Native Cloud, providing a full-stack platform from infrastructure to managed agents
  • Strong growth in high-value customers: Million+ Dollar Customer ARR grew 179% year-over-year to $183 million in Q1 2026

Watch for

  • Brand dilution and potential loss of identity as Paperspace is fully absorbed into DigitalOcean, with its own website now redirecting to DigitalOcean's AI products
  • Dependence on NVIDIA GPU supply and pricing; any disruption could impact service availability and cost competitiveness
  • Intense competition from hyperscalers (AWS, Azure, GCP) and other GPU cloud providers like Lambda Labs and CoreWeave, which may offer similar or better pricing

Recent moves

Key Information

Industry
GPU Cloud / Infra
Founded
2014
Headquarters
Brooklyn

Frequently Asked Questions

What is Paperspace and what does it do?

Paperspace is a cloud computing platform that provides GPU-accelerated infrastructure for machine learning and AI workloads. It offers tools for developing, training, and deploying AI models, including Gradient for ML workflows and Core for virtual GPU servers.

Who owns Paperspace now?

Paperspace was acquired by DigitalOcean in July 2023 and is now integrated into DigitalOcean's AI-Native Cloud offering. The Paperspace brand has been subsumed, and its website redirects to DigitalOcean's AI products as of early 2026.

How does Paperspace pricing work?

Paperspace offers per-second billing for GPU compute, claiming up to 70% savings compared to major public clouds. Users pay only for the resources they use, with access to NVIDIA H100 GPUs, making it a cost-effective option for AI workloads.

What is Paperspace Gradient used for?

Paperspace Gradient is a tool for machine learning model development, training, and deployment. It provides a managed environment for building and fine-tuning AI models, integrated with DigitalOcean's AI-Native Cloud for inference and agentic workloads.

Who typically uses Paperspace?

Paperspace serves over 500,000 builders, including AI startups, individual developers, mid-market enterprises, and academic researchers. It is also used by professionals in 3D graphics and rendering who need scalable GPU resources for their projects.

Is Paperspace still available as a standalone service?

No, Paperspace is no longer a standalone service. After its acquisition by DigitalOcean, it has been fully integrated into DigitalOcean's AI-Native Cloud platform. The Paperspace website now redirects to DigitalOcean's AI product pages.

Sources

  1. www.paperspace.com — Product portfolio, NVIDIA H100 GPUs, per-second billing, over 500,000 builders, DigitalOcean acquisition announcement
  2. investors.digitalocean.com — Q1 2026 revenue ($258M), AI Customer ARR growth (221%), Million+ Dollar Customer ARR ($183M), AI-Native Cloud launch, Katanemo Labs acquisition
  3. ir.rackspace.com — Rackspace Technology Q1 2026 results (not directly Paperspace, but shows parent company financial context)
  4. techcrunch.com — Context on tech industry layoffs in 2025, relevant for competitive landscape