/Companies

Paperspace

acquired by DigitalOceanYC W15

New York City, US · Founded 2015 · 50 employees · 29 known investors

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Acquired by DigitalOcean July 2023 · terms undisclosed

Paperspace provided cloud GPU infrastructure and a machine learning development platform, Gradient, for training and deploying AI models. It was acquired by DigitalOcean in 2023.

Also known as Paperspace by DigitalOcean · Paperspace dba DigitalOcean

Founders & leadership· Y Combinator alumni (W15)

Paperspace was founded in 2015 by Dillon Erb and Daniel Kobran.

DEDillon Erb
Dillon ErbCo-founder · CEO2014–2023Dillon Erb is CEO and co-founder of Autonomous Technologies Group (YC F25). Previously, he founded and led Paperspace as CEO and co-founder (YC W15), which was acquired by DigitalOcean in 2023. He also works as an angel investor and advisor.
DKDaniel Kobran
Daniel KobranCo-founder2015–2023Daniel Kobran cofounded Paperspace, a GPU cloud computing platform that was acquired in 2023, and later cofounded Autonomous Technologies Group. He has expertise in cloud-scale GPU computing and AI infrastructure.
OHOuwen Huang
Ouwen HuangCEO
BL
Benjamin LamsonHead of Sales
T
TomCTO
PR
Philip ReichenbergerDirector of Engineering
RH
Rachel HeatherOperations Coordinator
LY
Liuba YurgensonPeople
CK
Curtis KlineHead of Opsformer
MTMatthew Trost
Matthew TrostSoftware Engineer2016–2016Founder/CTO at Aesthetic
TG
Tom GajewskiCloud Infrastructure Architectformer
SM
Sophie McNeillOperations Managerformer

Investors · 29

Fusionlisted by FusionPalo Alto · $500K – $1M

How we know: the VCSheet dataset · open dataset · 5k.vc investor directory · Y Combinator's founder network · Not right? Tell us

Ludlow Ventureslisted by Ludlow VenturesOak Park · $50K – $1M

How we know: funding news · techcrunch.com · the VCSheet dataset · Y Combinator's founder network · Not right? Tell us

Micron Ventureslisted by Micron VenturesBoise

How we know: Micron Ventures's portfolio page · the VCSheet dataset · Y Combinator's founder network · Not right? Tell us

Zillionizelisted by ZillionizePalo Alto · $200K

How we know: Y Combinator's founder network · Not right? Tell us

Center Electricreported

How we know: Y Combinator's founder network · Not right? Tell us

DG Daiwa VenturesreportedTokyo

How we know: Y Combinator's founder network · Not right? Tell us

East VenturesreportedSingapore · $15M

How we know: Y Combinator's founder network · Not right? Tell us

Exponent CapitalreportedLondon

How we know: Y Combinator's founder network · Not right? Tell us

Fundamental VenturesreportedLakeway

How we know: Y Combinator's founder network · Not right? Tell us

InnoSpring Seed Fundreported

How we know: Y Combinator's founder network · Not right? Tell us

Intel CapitalreportedSanta Clara · $1M – $20M

How we know: funding news · research · blog.paperspace.com · Y Combinator's founder network · Not right? Tell us

PreAngel FundreportedBeijing · $20K – $1M

How we know: Y Combinator's founder network · Not right? Tell us

QueensBridge Venture Partnersreported

How we know: Y Combinator's founder network · Not right? Tell us

Venture Investment AssociatesreportedPeapack

How we know: Y Combinator's founder network · Not right? Tell us

WefunderreportedSan Francisco

How we know: Y Combinator's founder network · Not right? Tell us

Funding

SEC filings, press & company announcements

$44.9M disclosed across 5 of 9 rounds · 2015–2021

▶$6.2MraisedMay 2021 · 13 investors · Other Technology
Rule 506(b)
Officers, directors & promoters on the filing
  • Lucas NelsonDirector
  • Daniel Alexander KobranExecutive Officer, Director
  • Yaniv SuissaDirector
  • Dillon Thompson ErbExecutive Officer, Director
Offering amount
$10M
Amount sold
$6.2M
First sale
May 2021
Incorporated
Corporation, Delaware
Federal exemptions
06b
Full filing on SEC EDGAR ↗
▶$19MraisedOct 2018 · 47 investors · Other Technology
Rule 506(b)
Officers, directors & promoters on the filing
  • Daniel Alexander KobranExecutive Officer, Director
  • Yaniv SuissaDirector
  • Dillon Thompson ErbExecutive Officer, Director
Offering amount
$19M
Amount sold
$19M
First sale
Aug 2018
Incorporated
Corporation, Delaware, 2014
Federal exemptions
06b
Full filing on SEC EDGAR ↗
▶$2.8MraisedApr 2016 · 33 investors · Other Technology
Rule 506(b)
Officers, directors & promoters on the filing
  • Dillon ErbExecutive Officer, Director
  • Daniel KobranExecutive Officer, Director
Offering amount
$2.8M
Amount sold
$2.8M
First sale
Mar 2015
Incorporated
Corporation, Delaware, 2014
Federal exemptions
06b
Full filing on SEC EDGAR ↗

Source: SEC EDGAR Form D. Amounts as filed; amended filings shown once at their latest values.

Company profile

researched Aug 2026

Paperspace is a cloud computing company offering GPU-accelerated infrastructure and tooling for machine learning, AI and graphics workloads. Its platform is organized around two main products: Core, a fully managed cloud GPU platform providing Linux virtual servers with a web console, REST API, CLI, Terraform provider, shared network drives, VPN/private networking and per-second billing; and Gradient, an ML platform covering hosted Jupyter Notebooks, Workflows for automating machine learning tasks, distributed training, a model repository and Deployments that turn models into scalable API endpoints. A third product, Portal, is low-latency desktop streaming software offered in limited preview.

The compute catalog spans NVIDIA M4000, P4000/P5000/P6000, RTX4000/RTX5000, V100, A4000/A5000/A6000, A100 and A100-80G, and HGX H100 instances, available singly or in multi-GPU configurations of up to 8x, alongside dedicated GPU servers and Windows-licensed desktops. Beyond machine learning, the company markets solutions for GPU infrastructure, cloud desktops (VDI), 3D workstations, rendering and gaming. Gradient can also be run as a managed service, in a private cluster, or self-hosted on private cloud, on-premise systems such as DGX, or hybrid Azure/AWS/GCP environments via a Gradient Installer.

Following its acquisition, Paperspace operates as Paperspace dba DigitalOcean, and its site directs users to DigitalOcean.com for the full suite of GPUs and AI products.

Founding story

Company materials date the start of the effort to the fall of 2014, when the founders set out to make cloud computing more accessible, betting on GPU acceleration and a simplified user experience as differentiators. After completing Y Combinator's Winter 2015 batch, the team iterated through several versions before settling on GPU-powered virtual machines, and found its strongest early demand among deep learning developers who were underserved by more complex IaaS offerings. Founder accounts name Dillon Erb and Daniel Kobran as co-founders, with Erb serving as CEO; one secondary account also names Joey Santo as a co-founder and describes an initial product built around on-demand virtual desktops and cloud GPUs launched through a web interface rather than a command line.

Business model

Paperspace sells cloud infrastructure and platform software directly to developers and businesses on a self-service and sales-assisted basis. Users can create a free account, use free-tier GPU instances, and pay hourly or per-second for paid instance types; Gradient adds subscription tiers on top of usage. Enterprise arrangements include private clusters, self-hosted deployments and custom plans handled through a sales team.

Usage-based compute billing (hourly/per-second rates per GPU instance type, e.g. $0.45/hour for M4000 up to $3.09/hour for H100) combined with subscription plans for the Gradient ML platform: a free tier, Pro at $8/month, Growth at $39/month, and team tiers (T0 free, T1 at $12 per user/month, T2 priced on request). Storage above included quotas is billed at $0.29/GB, and payments are processed via Stripe with custom invoicing available on business plans.

Traction

The website cites more than 500,000 builders using the platform for workloads from machine learning to 3D graphics. At its Series A the company reported over 150,000 active user accounts and a fast-growing base of business customers, achieved with a small engineering team. Y Combinator lists a team size of 50. Customer references include Gradient Health in medical imaging.

Latest developments

Paperspace is now part of DigitalOcean and operates as Paperspace dba DigitalOcean, with its site directing users to DigitalOcean.com for the full GPU and AI product suite. Recent product and partnership news includes support for the NVIDIA H100 Tensor Core GPU, on-demand Graphcore IPU access through Notebooks, a Gradient Installer that allows Gradient to run on any compute cluster, and joint appearances as Paperspace by DigitalOcean at NVIDIA GTC.

▸Full profile — market position, technology, go-to-market, geography, history, risks & controversies

Market position

Paperspace positions itself as a lower-cost, simpler alternative to major public clouds for GPU compute, claiming savings of up to 70% versus large public cloud providers or buying servers, and citing one of the broadest GPU selections in the cloud. Secondary commentary places it among GPU cloud providers alongside RunPod, CoreWeave, DigitalOcean and Hugging Face, and notes it established an early lead in GPU cloud services while the competitive landscape was still forming.

Emphasis on radical simplicity and speed of onboarding (signup to model training in seconds via pre-configured templates), a broad catalog of GPU instance types with per-second billing and no commitments, transparent on-demand pricing with billing alerts and limits, free GPU tiers, and an integrated path from notebook development through training to deployed API endpoints. Gradient's ability to run multi-cloud, in private clusters or on-premise distinguishes it from purely hosted offerings.

Technology

The platform provides an abstraction layer over accelerated computing: instant provisioning of NVIDIA GPU instances, job scheduling and resource provisioning without server management, pre-configured ML framework templates, automatic versioning, tagging and lifecycle management for reproducibility, and browser-based streaming for remote desktop access. Access is available through a web console, desktop apps for Windows, Mac and Linux, an open-source CLI, a RESTful API and a Terraform provider. Infrastructure options include multi-GPU instances up to 8x, SSD storage, shared network drives, private networks and IPsec VPN tunnels; Graphcore IPUs are offered alongside NVIDIA GPUs, and the company describes itself as an NVIDIA Cloud Partner.

Go-to-market

Self-service product-led acquisition through a free tier and free GPUs, Google/GitHub signup, and low-cost entry subscriptions, supplemented by a sales motion ('Talk to an Expert', Contact Sales) for business and enterprise plans. Developer marketing includes a technical blog with community-contributed tutorials, a public forum, documentation and quickstart guides, a referral program, education discounts, conference presence and meetups, and comparison content such as a cloud GPU provider guide.

Individual developers, ML/AI engineers, data scientists, researchers and students on the low end; research groups, startups and professional ML development teams in the middle; and enterprises requiring private clusters, on-premise or hybrid deployments, team management, permissions, resource tracking and regulatory compliance support. Vertical use cases highlighted include machine learning, GPU infrastructure, virtual desktops, 3D workstations and rendering, visual computing, gaming, and medical imaging.

Geography

Headquartered in New York City. The company markets global scale with 24/7 engineering support, and secondary commentary describes expansion of data centers in additional locations to reduce latency for international users.

History

Paperspace went through Y Combinator in Winter 2015 and built GPU virtual machines for emerging workloads, particularly deep learning. By the time of its $13M Series A announcement it reported more than 150,000 active user accounts and a growing business customer base, and had launched what it called its most significant product to date along with institutional partnerships and a developer community. The company later added the Gradient ML platform, a Gradient Installer for running Gradient on any compute cluster, a Graphcore IPU partnership, and support for NVIDIA H100 GPUs. In 2023 it was acquired by DigitalOcean, after which the brand operates as Paperspace dba DigitalOcean and customers are pointed to DigitalOcean's GPU and AI products.

Risks & controversies

Available sources give conflicting founding details: the company blog states the business started in the fall of 2014 and completed Y Combinator in 2015, Y Combinator lists a 2015 founding year, and a secondary business-analysis site variously gives 2014 and 2013. The same secondary site's funding figures (a $3.5M Series A in 2017 and a $16M Series B in 2019) conflict with the company's own announcement of a $13M Series A bringing total funding to $19M.

Compiled by commissioned research from 12 cited public sources — announcements, filings, and press listed under research sources below.

Key figures

latest reported
Active user accountsJan 2018150,000
Active user accountsJan 2017150,000
Gradient Growth plan priceJan 2023$39
Gradient Pro plan priceJan 2023$8
NVIDIA A100-80G on-demand priceJan 2023$1.15
NVIDIA H100 on-demand priceJan 2023$3.09
Registered builders/users on platformJan 2023500,000 users
Stated compute cost saving vs major public cloudsJan 2023up to 70%
Storage overage priceJan 2023$0.29
Team sizeJan 202350 employees
Team sizeJan 202350 employees
Total funding raisedJan 2023$36M
Total funding raised to dateJan 2018$19M
UsersJan 2023500,000 users

Company-reported or press-reported figures, each dated to when it was claimed — not independently audited.

Founder mafia

5 people who came through Paperspace went on to found or lead other companies.

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Companies working in the same space as Paperspace.

Timeline · 11

launches, deals, and filings
Jul 2023
DigitalOcean acquires Paperspace for $111M in cash

TechCrunch coverage linked from Paperspace's Y Combinator profile reports DigitalOcean acquired the cloud computing startup Paperspace for $111 million in cash. Paperspace's website and blog announce that Paperspace is joining DigitalOcean.

$111M source ↗

Jul 2023
DigitalOcean acquires Paperspace for $111M in cash

Y Combinator's company profile links press coverage reporting that DigitalOcean acquired Paperspace for $111 million in cash; Paperspace's site and blog confirm the company joined DigitalOcean and now operates as Paperspace dba DigitalOcean.

$111M source ↗

Jan 2023
Gradient Health customer partnership on medical imaging

Paperspace's site features a customer story with Gradient Health focused on advancing medical imaging workloads.

source ↗

Jan 2023
Partnership with Graphcore for on-demand IPU access

Paperspace announced a partnership with Graphcore offering on-demand access to Graphcore IPUs, including Notebooks powered by IPUs.

source ↗

Jan 2022
Support for NVIDIA H100 Tensor Core GPU

Company blog announced Paperspace launched support for the NVIDIA H100 Tensor Core GPU; H100 instances were listed on the pricing page at $2.24/hour for HGX H100 configurations.

source ↗

Jan 2022
Support for the NVIDIA H100 Tensor Core GPU

The company blog announced Paperspace support for the NVIDIA H100 Tensor Core GPU.

source ↗

Sep 2019
Gradient extended to hybrid and multi-cloud environments

A release introduced CI/CD for machine learning and enabled development across multi-cloud, on-premise and hybrid environments.

source ↗

Mar 2018
Launch of Gradient

Press coverage listed by the company dates the launch of Gradient, a platform for training and deploying AI models in the cloud, to March 2018.

source ↗

Jan 2018
Paperspace closes $13M Series A

Paperspace announced a $13M Series A from SineWave Ventures, Battery Ventures and Intel Capital, with follow-on participation from Initialized Capital, bringing total funding to $19M.

$13M source ↗

Jan 2017
Paperspace closes $13M Series A

Paperspace announced a $13M Series A from SineWave Ventures, Battery Ventures and Intel Capital, with follow-on participation from Initialized Capital, bringing total funding to $19M at the time.

$13M source ↗

Jan 2015
Completed Y Combinator (Winter 2015 batch)

Paperspace participated in Y Combinator's Winter 2015 batch and, after finishing the program, settled on GPU-powered virtual machines as its core product.

source ↗

Dated company events from announcements, filings, and press; legal rows summarize public dockets and regulator releases.

Legal entities · 1

corporate structure
Paperspace Co.

In the news

▸Research sources · 12

primary sources listed

12 public sources were cited for this profile; the first-party ones are listed here.

Frequently asked questions

What does Paperspace do?
Cloud GPU and machine-learning platform, now part of DigitalOcean, for developing, training and deploying AI models.
Who founded Paperspace?
Paperspace was founded by Dillon Erb, Daniel Kobran in 2015.
Who are Paperspace's investors?
Paperspace's investors include Amino Capital, BoxGroup, DCVC (Data Collective), DG Ventures, Inc., Fusion, Initialized Capital, Ludlow Ventures, Lytical Ventures and 21 more.
How much funding has Paperspace raised?
Paperspace has disclosed $44.9M raised across 5 of its 9 known rounds.
Who acquired Paperspace?
Paperspace was acquired by DigitalOcean.
Where is Paperspace headquartered?
Paperspace is headquartered in New York City, US.