London-based NexGen Cloud, a technology firm providing sustainable AI cloud solutions, has closed its Series A funding round, securing $45M (nearly €41.10M). The funding brings the company’s post-money valuation to $354M (nearly €323.36M).
NexGen Cloud received funding from high-net-worth individuals and family trusts. The company plans to use the proceeds to expand its capacity across global regions, with a focus on offering sovereign capabilities in Europe and other areas.
AI infrastructure startup
Founded in 2020 by Christopher Starkey, Youlian Tzanev and Antony Wade, NexGen Cloud provides enterprise AI cloud solutions for the global market.
Its platforms help businesses and developers run AI systems by offering different services. These include Private Clouds, which are used in specific regions to keep data and operations local, and Hyperstack, a service that gives access to GPUs whenever needed.
NexGen Cloud provides AI cloud infrastructure with services including managed Kubernetes, autoscaling, SLURM workload management, and storage designed for AI, HPC, and enterprise applications.
To streamline access to its services, NexGen Cloud developed a proprietary API that enables partner companies to deliver AI computing power through the Hyperstack platform.
The company manages thousands of GPUs with a 90 per cent utilisation rate and serves over 10,000 users, including organisations such as Red Hat, Ingenix.AI, Tyne, and ArchiLabs. Its partnerships support work across sectors including software development, clinical trial simulations, and AI-assisted design in architecture, engineering, and construction.
Since the launch of Hyperstack in September 2023, the company has reported a total revenue of £72M for 2023 and 2024. Revenue from AI cloud operations grew by 380 per cent, and transactions on the platform increased by 2272 per cent year-on-year.
Capital utilisation
NexGen Cloud will use the funds to expand infrastructure in response to high platform usage and increasing AI demands in Europe. The company also plans to grow its Full Stack Cloud capabilities to support AI applications for the enterprise market.
The company plans to develop partnerships to improve access to AI computing services for large corporations and government entities. Its technology roadmap includes expanding infrastructure services and introducing new AI products that support integration across the development cycle.
NexGen Cloud will also offer serverless inference on dedicated virtual machines to provide more control over privacy and data security.
The company mentions that it will launch Fine-Tuning-as-a-Service to help customers adapt pre-trained AI models to specific use cases and manage resource allocation across AI clusters. This move supports the company’s focus on expanding its AI service offerings and contributing to digital transformation in the region.
Chris Starkey, CEO and co-founder of NexGen Cloud, says, “We are thrilled to have the backing of our esteemed investors who share our vision for a robust and sovereign AI infrastructure in Europe. This Series A funding is a pivotal step towards realising our goal of becoming the backbone for AI-powered solutions across the continent.”
