In a major development within the realms of artificial intelligence (AI) and cloud computing, CloudOne Digital has recently announced its acquisition of Servers.com, a prominent provider of “bare metal” services with data centers spanning North America, Western Europe, and Asia. The acquisition has garnered significant attention and is estimated to be valued at a substantial $200 million. This strategic move positions CloudOne Digital as a key player in the multi-cloud ecosystem and reflects its focus on catering to mid-market customers with compute-intensive workloads. In this article, we delve into the details of this groundbreaking acquisition, exploring the impact it may have on the AI and cloud computing landscapes.
CloudOne Digital’s Expansion Strategy
With the acquisition of Servers.com, CloudOne Digital reinforces its commitment to enhancing its multi-cloud capabilities and expanding its portfolio of services. The move is in line with the company’s broader strategy to meet the growing demands of mid-market customers seeking robust solutions for compute-intensive workloads across various industries.
Servers.com: A Provider of “Bare Metal” Services
Alexey Gubarev founded Servers.com in 2013, and it is well known for its expertise in providing “bare metal” services through a network of 18 global data centers. The company has gained recognition for offering “Infrastructure as a Service” (IaaS) solutions, catering to industries with large and persistent workloads. Among its clients are sectors such as video gaming, fintech, adtech, IT services, sports tech, and web3 applications.
Lensa AI Backer and AI-driven Innovations
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CloudOne Digital
The acquisition of Servers.com holds particular significance due to its connection with Lensa AI, an AI-powered app that gained widespread popularity for its innovative “magic avatars” feature. Lensa AI, backed by CloudOne Digital, utilizes the Stable Diffusion AI model, an open-source platform that generates images based on a vast training dataset comprising billions of internet images. The app’s success was notable, generating over $70 million in revenue in November 2022 alone.
Palta: A Studio-style Investor in AI Startups
At the heart of this acquisition lies Palta, a studio-style investor that has played a pivotal role in backing AI-driven startups and health apps. Palta’s association with Lensa AI and its creators, Prisma Labs, contributed to the app’s meteoric rise and success on mainstream social media. In addition to Lensa AI, Palta is responsible for developing consumer mobile apps, including Flo (a period and ovulation tracker), Simple (a nutrition program), and Zing (an AI-powered personal fitness companion).
Strengthening CloudOne Digital’s Holdings
Photo: CloudOne Digital
As part of the acquisition deal, Servers.com will integrate into the CloudOne Digital-owned “Liquid Web” family of brands, a holding company encompassing a diverse array of multi-cloud-based solutions. This integration is expected to bolster CloudOne Digital’s overall market presence and further establish it as a prominent player in the cloud computing arena.
Key Players in the Acquisition
Nick Dvas and Konstantin Bezruchenko, co-founders of Servers.com, are set to join the CloudOne Digital leadership team. Dvas will assume the role of President of Servers.com, while Bezruchenko will be responsible for overseeing global infrastructure and procurement for CloudOne Digital.
The Vision of Alexey Gubarev
Alexey Gubarev, co-founder of Servers.com and Palta, has been a strong advocate for the Cyprus tech ecosystem, having become a permanent resident of Cyprus in 2002. However, Gubarev’s journey has not been without challenges, as he faced allegations of association with his former home due to his previous Russian citizenship. He garnered attention in 2020 when he sued BuzzFeed in a U.S. court over the implications that his company, XBT, was involved in the “Methbot” scam. The lawsuit was eventually dismissed, with Gubarev and XBT executives asserting their cooperation with authorities and their role in uncovering evidence related to the case.
Conclusion
The acquisition of Servers.com by CloudOne Digital marks a significant milestone in the world of AI and cloud computing. This strategic move aligns with CloudOne Digital’s vision of expanding its multi-cloud capabilities and catering to the needs of mid-market customers with compute-intensive workloads. As the AI and cloud computing landscape continues to evolve, CloudOne Digital’s acquisition of Servers.com positions the company as a key player, driving innovation and growth in the industry.
