Together AI: the $44M/year Vercel of generative AI

Jan-Erik Asplund
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TL;DR: Sacra estimates that Together AI hit $44M in annual recurring revenue (ARR) in April with their developer experience-centric layer built on top of CoreWeave and Lambda Labs’s GPU cloud products. For more, check out our full report and dataset on Together AI.

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Key points from our research:

  • Companies use cloud GPU hosts Together AI, CoreWeave, and Lambda Labs to use Nvidia (NASDAQ: NVDA) graphics processing units (GPUs) to train AI models on their datasets, fine-tune them, and deploy them into production. Together AI differentiated itself as a GPU cloud platform early by indexing on open source, allowing its customers access to 100+ open models from Mistral to Llama-2 to rapidly experiment with training different LLMs on their data.
  • Together AI found product-market fit charging per-token, based on the number of API calls, as a developer experience-centric layer on top of CoreWeave and Lambda Labs’s per-hour pricing, allowing them to win early-stage startups and individual developers who can mitigate the risk of paying for idle GPU time. While CoreWeave and Lambda Labs focus on locking in multi-year reservations to recoup the fixed capex costs of their data centers and GPUs, Together AI operates a layer above, aligning their pricing with the spiky API volumes of startups training new models and launching new products. 
  • Sacra estimates that Together AI hit $44M in annualized revenue in April 2024, up 2095% year-over-year, with 90% of revenue coming from sales of bundled on-demand GPU compute and training via Together Inference and ~45% gross margin. Compare to ~80% gross margin GPU cloud providers like CoreWeave with $440M of revenue in 2023, up 1,660% from $25M in 2022, and Lambda Labs at $250M of revenue in 2023, up 1,150% from $20M in 2022, and fellow reseller Crusoe Energy at $100M of revenue in 2023, up 400% from ~$20M in 2022.

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