AI cloud startup PaleBlueDot raises $150M Series B at $1B+ valuation to scale GPU infrastructure

Artificial intelligence cloud startup PaleBlueDot AI just crossed a major threshold. The Palo Alto–based company has raised $150 million in a Series B round that values the business at more than $1 billion, marking one of the larger recent bets on the fast-growing market for AI computing capacity.

The round was led by B Capital, backing PaleBlueDot’s push to scale GPU infrastructure across the United States and Asia. The company enters a crowded neocloud field, where startups position themselves as alternatives to hyperscalers like Amazon Web Services and Microsoft Azure by focusing squarely on AI workloads and access to scarce chips.

“With the vision to empower AI everywhere for everyone, ultimately, our mission is to make intelligence universally accessible,” said Stephen Watts, CEO of PaleBlueDot AI.

PaleBlueDot becomes unicorn with $150M Series B as demand for AI GPUs surges

PaleBlueDot plans to put much of the new capital into Nvidia graphics processing units and the infrastructure required to run them at scale. Hiring is also part of the plan, with new staff expected to support partnerships and enterprise deployments as demand continues to climb.

The company operates with a split business model. One side runs a marketplace that connects early-stage AI startups, most of them U.S.-based, with spare GPU capacity sourced from third parties. The other side designs and manages large, dedicated GPU clusters for enterprise customers, often housed in colocation facilities operated by firms such as Digital Realty and Equinix.

That enterprise work has already taken PaleBlueDot deep into Asia. The company says it has built a strong customer base in Japan, South Korea, and Singapore, with further growth planned across Southeast Asia. One customer, according to people familiar with the matter, is an overseas entity of Xiaohongshu, the Chinese social media platform known internationally as RedNote.

That arrangement reflects a broader shift in how Chinese technology firms access advanced AI hardware. Direct purchases of Nvidia’s most advanced chips remain restricted, yet legal access is possible through data centers located outside China. Earlier this month, U.S. authorities cleared Nvidia to sell its H200 chips to China, and Beijing has since approved its first batch of imports, signaling sustained demand for high-end AI compute.

PaleBlueDot was co-founded in 2024 by Jonathan Zhu and Shaodong Huang. The company previously raised $10 million in Series A funding from family offices. Last week, the company named enterprise technology veteran Stephen Watts as its chief executive, a move that signals a growing focus on large customers and long-term contracts.

Investor interest in neocloud providers continues to build, with companies like CoreWeave showing how specialized AI infrastructure players can carve out real scale. PaleBlueDot’s latest round suggests that investors still see room for more winners as AI workloads push existing cloud models to their limits.