ScaleOps secures $130 million Series C at $800 million valuation as AI compute demand explodes
The Israeli startup targets inefficiencies in how enterprises manage cloud and GPU resources.
ScaleOps, an autonomous cloud and AI infrastructure resource management platform, has raised $130 million at a valuation of more than $800 million. The Series C round was led by Insight Partners, with participation from all existing investors, including Lightspeed Venture Partners, Glilot Capital Partners, NFX, and Picture Capital. The round brings the company’s total funding since its inception to more than $210 million and includes a secondary transaction worth tens of millions of dollars for employees.
The raise comes as demand for cloud and artificial intelligence infrastructure accelerates sharply. According to the company, demand for such resources has been growing at triple-digit rates year on year, driven by the rapid scaling of AI applications. But that growth has exposed a structural weakness: many organizations still rely on manual and static systems to manage increasingly complex and dynamic computing environments.
ScaleOps’ platform is built around automating decisions that have traditionally been handled by engineering teams. It continuously allocates and adjusts computing resources in real time, aiming to ensure that applications receive the capacity they require without over-provisioning. The company says this reduces inefficiencies that can lead to wasted resources and rising cloud costs, while also freeing engineers from constant manual intervention.
“Our employees have played a huge part in this journey, and as we build a large company, it was important for us to reward them and allow them to benefit through a secondary transaction,” CEO Yodar Shafrir told Calcalist. “The company’s value has grown significantly during what has been our most important year, in which we expanded from a few million dollars in sales to tens of millions.
“Our product has also evolved significantly. We manage cloud resources for customers, and we achieved a technological leap that enables them to realize value more quickly. We have begun working with some of the largest companies in the world. At the same time, the market itself has grown. As AI adoption accelerates, with more agents and applications being deployed, the demand for computing power has increased dramatically. This is evolving into a system that autonomously manages all agents and applications. We plan to build many more products in AI infrastructure and agent management, and to expand our development teams accordingly.”
ScaleOps was founded in 2022 by Shafrir, a former professional triathlete who competed for 15 years, represented Israel internationally, and won national championships. Since its founding, the company has recorded growth of more than 350% year-on-year. It currently manages production environments for hundreds of customers, including Fortune 100 companies and global enterprises such as Adobe, Wiz, Armis, DocuSign, and Coupa.
Over the past year, ScaleOps has tripled its workforce and now employs more than 120 people across Israel, North America, and Europe. By the end of the year, the company expects to triple its headcount again, while expanding its R&D center in Israel and continuing to build out global marketing and sales teams.
“We took a completely new approach from the outset. We said that everything related to cloud management should be autonomous, allowing development teams to focus on innovation rather than resource management. This is fundamentally different from anything that existed in the market,” Shafrir added. “The round was completed on the eve of the war. We are taking care of our employees and their families during this period, and from a business perspective, we continue to perform very well despite the circumstances.”
Looking ahead, he said: “In our next round, we expect to reach unicorn status. We are at our strongest momentum, driven by AI. The problem we address is only becoming more acute, and while we believe we lead in technological depth, we still have significant room to grow.”
