Applied Compute Raises $350M at a $3.25B Valuation, Led by Elad Gil

Applied Compute raised $350 million at a $3.25 billion valuation, led by Elad Gil, the company said on November 2. Nvidia, Shopify Ventures, and HubSpot Ventures are in the round, with Kleiner Perkins, Lux Capital, Blackstone, and others. The company said annualized revenue run rate has passed $100 million, less than 18 months after it was founded.

The numbers

• $350 million at a $3.25 billion valuation, led by Elad Gil. Applied Compute posted the round on November 2. Latham & Watkins, which advised the company, confirmed the same price the next day.
• The company named Kleiner Perkins, Lux Capital, Hanabi Capital, Nvidia, Blackstone, Shopify Ventures, HubSpot Ventures, Diffusion, Definition, Timeless, Layer Global, Neo, Abstract, Nova, Quantum Light, First Harmonic, and Swish.
• Annualized revenue run rate went from zero to $100 million in less than 18 months, the company said. That figure is not a public filing. SiliconANGLE reported it from the announcement.
• Since the last fundraise, Applied Compute said it has more than doubled the enterprises it serves. Named customers include Microsoft, Shopify, Mercor, Harvey, DoorDash, Cognition, Clay, and Decagon.

What the company says it sells

Founders Yash Patil, Rhythm Garg, and Linden Li wrote that training, inference, and routing are the first pieces of a larger stack, and that the company is building the systems a customer needs to own the models it runs. The product they pointed to is AC2, the Applied Compute Agent Cloud, introduced three months before the post. Since July, customers have run more than 1,700 training runs on AC2. Inference now serves more than 1 trillion tokens a day, the company said. It said 40% of customers use Applied Compute for both training and inference.

Two customer results in the post are also the company's own. For Harvey, Applied Compute said it trained a model for the Review Table product that improved answer and citation quality at less than half the inference cost of a frontier alternative. For Clay, it said a custom router cut production inference costs by up to 47%.

"Training, inference, and routing are the first pieces of a much larger stack. We're building the AI infrastructure every company will need to fully own their intelligence, from the models themselves to the systems that run, monitor, and secure them."

Rhythm Garg, Yash Patil, and Linden Li, in the November 2 post

Who started it

In an October 29, 2025 post, the company said the founders were researchers at OpenAI. Yash worked on Codex, Rhythm on the o1 reasoning model, and Linden on the machine-learning systems used to train with reinforcement learning. That post said the company was already backed by $80 million from Benchmark, Sequoia, Lux, Hanabi, Neo, Definition, Elad Gil, and others. The November raise is Gil leading, after he was already on the cap table.

The company did not, in the new post, restate a round name or a prior valuation. The $3.25 billion figure is the one it printed on November 2.

Where the money goes

Applied Compute said it will use the round to expand compute capacity, grow the team, and speed enterprise deployment. It said the team has tripled since January, and that 85% of the company are researchers and engineers. SiliconANGLE described the same use of proceeds as more infrastructure and a wider market presence, and named Microsoft and DoorDash among the customers.

What we are watching

The price, the lead, and the $100 million run rate come from the company's post. Counsel confirmed the round size, the valuation, and the investor list. The token volume, the 1,700 training runs, and the Harvey and Clay cost claims are company-reported. The post does not say how much of the $350 million is primary, and it does not name the round. The next useful disclosure is a filing, or a customer confirming the run rate outside the announcement.