Paperspace
Paperspace is an accelerated cloud computing platform for AI/ML — providing GPU infrastructure, hosted Jupyter notebooks, model training, and one-click deployments under the slogan 'Fast. Simple. Scalable.' Acquired by DigitalOcean in July 2023 for $111M; now operates as the AI/ML cloud arm of DigitalOcean.
At a Glance
- ML researchers and data scientists
- AI/ML startups (especially YC and Hugging Face ecosystem)
- Enterprise teams running model training/inference
- Educators and bootcamps (fast.ai)
- +1 more
AI Tools by Paperspace
(1)
Gradient
ML Platform for Model Training
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Latest News
Paperspace founders' AI startup ATG emerges from stealth with $15M to bring autonomous AI financial advisors to everyone
DigitalOcean Acquires Paperspace for $111M to Expand AI Offerings
DigitalOcean Acquires Paperspace to Expand AI Offerings (official press release)
DigitalOcean acquires Paperspace (YC W15) for $111M in cash
Products & Services
End-to-end ML platform for building, training, and deploying machine learning models.
Hosted Jupyter notebooks with free GPU access for individuals and teams.
GPU-backed training instances for model development.
Convert trained ML models into scalable API endpoints with one click.
Market Position
Paperspace positions as a developer-first GPU cloud — simpler and cheaper than AWS/GCP/Azure for ML workloads, with hosted Jupyter and one-click deploys lowering the operational floor for individual developers and small teams. Post-DigitalOcean acquisition, sits as the AI/ML layer of a broader simple-cloud platform (versus the hyperscalers).
Key Competitors
Leadership
Founders
Dillon Erb
M.Arch '14, University of Michigan. Met co-founder Daniel Kobran at Michigan's architecture school. Led Paperspace from Y Combinator W15 through the $111M DigitalOcean acquisition. Now co-founder/CEO of Autonomous Technologies Group (YC F25), an AI financial advisor startup.
Daniel Kobran
M.Arch '14, University of Michigan. Co-founded Paperspace with Dillon Erb in 2014. Now co-founder of Autonomous Technologies Group (YC F25).
Executive Team
Dillon Erb
Co-founder, former CEO (now leading ATG/YC F25)
M.Arch '14, University of Michigan; Y Combinator W15 alumnus.
Daniel Kobran
Co-founder (now at ATG)
M.Arch '14, University of Michigan; YC W15 alumnus.
Founding Story
Paperspace was founded in 2014 by Dillon Erb and Daniel Kobran, who met as Master of Architecture students at the University of Michigan. The original product was a virtual desktop in the cloud aimed at disrupting clunky on-prem workstations. They went through Y Combinator's Winter 2015 batch, raised seed capital from Y Combinator and Jeff Carr (DigitalOcean co-founder), and pivoted/expanded into GPU cloud infrastructure for ML workloads as the AI wave grew. The founders explicitly credit YC ('I don't think it would have been possible without Y Combinator') for early traction. Acquired by DigitalOcean on July 6, 2023 for $111M cash to anchor DigitalOcean's AI/ML offering.
Business Model
Revenue Model
Usage-based GPU cloud + ML platform subscriptions. Per-second GPU billing on Machines and Notebooks; subscription tiers for Gradient and Workstream; enterprise contracts via DigitalOcean. Free tier for Notebooks (limited GPU hours).
Target Markets
- ML researchers and data scientists
- AI/ML startups (especially YC and Hugging Face ecosystem)
- Enterprise teams running model training/inference
- Educators and bootcamps (fast.ai)
- Creative professionals and gamers needing GPU desktops
- Training and fine-tuning machine learning models
- Running Jupyter notebooks with GPU acceleration
- Deploying ML models as scalable API endpoints
- Cloud-based GPU workstations for design, gaming, and research
- ML pipeline orchestration
- Teaching and research workflows (fast.ai, Y Combinator portfolio companies)
- NVIDIA
- Intel
- Deloitte
- Y Combinator