Surging enterprise demand for open source AI infrastructure is driving Applied Compute toward a US$3 billion valuation as annualised revenue hits US$50 million.
Applied Compute is in negotiations for a new funding round that would value the company at approximately US$3 billion, with investor Elad Gil in discussions to lead the financing. If completed, this valuation would be more than double its US$1.3 billion post-money valuation from an US$80 million round disclosed in April, which brought its total funding to US$160 million. The terms are not finalised, and it is unclear whether the US$3 billion figure represents a pre-money or post-money valuation.
Applied Compute currently generates approximately US$50 million in annualised revenue, up from the revenue levels disclosed by CEO Yash Patil in November. Founded in 2025 by former OpenAI researchers Yash Patil, Rhythm Garg, and Linden Li, the San Francisco-based firm provides software infrastructure for enterprises to run, customise, fine-tune, and deploy open source and open-weight AI models using proprietary data. Clients, including DoorDash, use the infrastructure for specialised agent workflows.
The funding round, expected to raise several hundred million dollars, comes as enterprises seek to reduce inference costs and avoid single-vendor reliance by transitioning from closed, proprietary providers (such as OpenAI and Anthropic) towards tailored, in-house open source models.
