Ori, a UK-based AI cloud computing startup, is in advanced negotiations to raise up to $80 million in a new funding round, according to sources familiar with the matter who spoke with Business Insider. Founded in 2019, Ori has positioned itself as a critical infrastructure provider in the AI ecosystem, offering companies access to Nvidia’s high-performance graphics processing units (GPUs) including the coveted H100 and A100 chips needed to train, deploy, and scale artificial intelligence applications.
The funding round details are not yet finalized and could still change, but the deal underscores the intense investor interest in AI infrastructure companies. According to a leaked pitch deck, Ori had already booked more than $40 million in annual recurring revenue as of Q1 2024, demonstrating strong market traction and commercial viability in the competitive GPU-cloud provider space.
While Ori declined to comment directly on the financing round, CEO and co-founder Mahdi Yahya emphasized the company’s commitment to building AI sovereign cloud infrastructure in the UK. This type of cloud computing ensures that data remains stored locally and cannot be transferred across borders without proper authorization—a critical consideration for governments and enterprises concerned about data sovereignty and security.
Yahya revealed that he recently met with officials at 10 Downing Street to discuss UK AI policy, signaling Ori’s strategic importance to Britain’s AI ambitions. The company plans to invest nine figures—over $100 million—in UK AI infrastructure over the next 24 months, a substantial commitment that could strengthen the country’s position in the global AI race.
Ori previously raised $10.4 million in 2021 at a $39 million post-money valuation, according to PitchBook data. The potential new funding round would represent a significant step up and validation of the company’s growth trajectory.
The startup operates in an increasingly hot sector, as companies doing the “pick-and-shovel” work of AI infrastructure attract substantial investor attention. Ori faces competition from well-funded rivals like CoreWeave, which secured $7.5 billion in debt financing from Blackstone in May 2024, just weeks after raising $1.1 billion in equity funding. The massive capital flowing into GPU providers and semiconductor startups reflects the critical bottleneck that access to computing power represents for AI development.
Key Quotes
We are deeply committed to growing the AI sovereign cloud in the UK
Mahdi Yahya, Ori’s co-founder and CEO, emphasized the company’s focus on building locally-controlled cloud infrastructure that keeps data within UK borders, addressing growing concerns about data sovereignty and security in AI applications.
I was pleased to recently be at 10 Downing St. to discuss UK AI policy. Our plan is to invest nine figures in the UK AI infrastructure over the next 24 months.
CEO Mahdi Yahya revealed high-level government engagement and announced plans to invest over $100 million in UK AI infrastructure, demonstrating Ori’s strategic importance to Britain’s national AI strategy and technological competitiveness.
Our Take
Ori’s funding round represents a broader shift in the AI investment landscape—infrastructure is becoming as valuable as the AI models themselves. The company’s focus on sovereign cloud computing is particularly astute, positioning it to capture government and enterprise clients increasingly concerned about data security and regulatory compliance. The stark contrast between Ori’s $80 million raise and CoreWeave’s multi-billion dollar funding rounds reveals a maturing market with room for multiple players at different scales. What’s most telling is the nine-figure UK infrastructure commitment—this isn’t just about commercial success but about national technological strategy. As AI becomes central to economic competitiveness, countries are realizing they need domestic infrastructure providers. Ori’s positioning at the intersection of commercial GPU provision and sovereign cloud computing could prove prescient as geopolitical tensions around technology intensify.
Why This Matters
This funding round highlights the critical importance of AI infrastructure in the current technology landscape. As AI models become increasingly sophisticated and computationally demanding, access to high-performance GPUs has become a major bottleneck for companies developing AI applications. Ori’s growth demonstrates that the AI value chain extends far beyond model developers—infrastructure providers are becoming equally essential and valuable.
The emphasis on sovereign cloud computing is particularly significant as governments worldwide grapple with data security, privacy, and technological independence concerns. The UK’s investment in domestic AI infrastructure through companies like Ori represents a strategic effort to maintain technological sovereignty and compete with AI superpowers like the United States and China.
For businesses, this trend means more options for accessing GPU computing power, potentially reducing dependence on hyperscale cloud providers and offering more flexible, specialized solutions. The massive capital flowing into this sector—evidenced by CoreWeave’s multi-billion dollar raises and Ori’s substantial funding—signals that AI infrastructure will remain a critical investment area, with implications for everything from AI development costs to national competitiveness in the technology sector.
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Source: https://www.businessinsider.com/ori-gpu-ai-startup-talks-raise-funding-nvidia-2024-10