Cast AI raised $35 million from investors for a platform that reduces cloud spending for businesses.
The startup's series B round was supported by Vintage Investment Partners, Creandum and Uncorrelated Ventures. The funding comes only months after Cast AI's $20 million investment round in March, bringing its total funding to $73 million.
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Headquartered in Miami and Vilnius, Lithuania, the startup uses artificial intelligence to analyze a company's cloud usage and make it more efficient to cut costs. Cloud service providers like Amazon Web Services, Google Cloud and Microsoft Azure provide on-demand, scalable data storage and other computing resources for businesses.
“Every single person at Cast AI is relentlessly focused on helping customers slash their cloud spend by automating tasks that are best performed by machine learning systems,” co-founder and CEO Yuri Frayman said in a statement.
The idea for the company was inspired by the founders' personal frustration with cloud storage. According to its website, Frayman and co-founders Laurent Gil and Leon Kuperman realized the cloud bill at their previous startup Zenedge (acquired by Oracle) was skyrocketing. That inspired them to create a platform that would allow businesses to automatically optimize their cloud use without manual intervention.
It's a major concern for companies: According to a 2022 study from data analytics firm Anodot, 49% of businesses say they struggle to control cloud spending. More than half said they did not have a clear understanding of cloud costs and could not effectively manage spending.
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In contrast, Cast AI reports its system can lower cloud bills by 50% or more.
"The new funding will further bolster customer savings and productivity as we expand our platform’s capabilities," Frayman told the Business Journal.
In addition to its offices in Miami and Vilnius, Cast AI has offices in Bangalore and Tel Aviv. The startup has more than 120 in-person and remote employees across the U.S., Europe, Asia and the Middle East.
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