DigitalOcean announced it has acquired Paperspace for $111 million in cash, with a goal to integrating Paperspace’s AI solutions.

Paperspace is a cloud-as-a-service provider with an emphasis on GPU-powered AI and ML applications. DigitalOcean clearly sees the acquisition as a way for the company to bolster its own AI offerings.

The increasing demand for AI/ML cloud solutions makes Paperspace’s GPU-powered infrastructure and AI/ML focused software stack valuable additions to DigitalOcean’s portfolio. Like DigitalOcean’s approach to the cloud, Paperspace simplifies the AI/ML experience, enabling easy and cost-effective experimentation and production across various AI/ML use cases, such as generative media, text analysis and natural language understanding, recommendation engines, image classification and many others.

DigitalOcean emphasizes the deal as a win-win for both companies’ customers. While DigitalOcean customers gain access to advanced AI/ML solutions, Paperspace customers will be able to benefit from DigitalOcean’s wider cloud offerings.

“We are excited to expand our portfolio tailored to the world’s SMBs and startups with simplified AI/ML offerings,” said Yancey Spruill, CEO of DigitalOcean. “This acquisition marks a significant milestone in DigitalOcean’s journey to revolutionize how SMBs and startups harness the power of the cloud and AI/ML for their applications and businesses. The combined offerings allow customers to focus more on building applications and growing their businesses and less on the infrastructure powering them.”

“DigitalOcean is renowned for simplifying complex cloud technologies and making them more accessible to developers and business alike,” said Dillon Erb, Co-founder and CEO of Paperspace. “We are thrilled to join forces with DigitalOcean, as we believe there is no better company to unlock the endless possibilities of AI/Ml for developers and businesses alike.”