Surging enterprise demand for open source AI infrastructure is driving Applied Compute toward a USD$3 billion valuation as annualized revenue hits USD$50 million.
Applied Compute is in negotiations for a new funding round that would value the company at approximately USD$3 billion, with investor Elad Gil in discussions to lead the financing. If completed, this valuation would be more than double its USD$1.3 billion post-money valuation from an USD$80 million round disclosed in April, which brought its total funding to USD$160 million. The terms are not finalized, and it is unclear whether the USD$3 billion figure represents a pre-money or post-money valuation.
Applied Compute currently generates approximately USD$50 million in annualized 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, customize, fine-tune, and deploy open-source and open-weight AI models using proprietary data. Clients, including DoorDash, use the infrastructure for specialized 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) toward tailored, in-house open-source models.
