The AI and cloud computing industry faces several key challenges: high costs of GPU services, limited scalability for compute-heavy tasks, and stringent data privacy regulations, particularly in Europe. NexGen Cloud tackles these issues with cost-effective, scalable GPU-as-a-Service solutions powered by renewable energy while ensuring compliance with European data privacy regulations. This makes advanced AI infrastructure both accessible and secure for businesses across sectors.
Today, the London-based startup secured a $45 million Series A funding round, led by Moore & Moore Investment Group, with participation from high-net-worth individuals and family trusts. The funding will help NexGen Cloud enhance its AI infrastructure by scaling its hyperscale capabilities to meet Europe’s growing AI computing demands.
NexGen Cloud will use the Series A funding to hire top-tier engineers specialising in AI infrastructure development and cloud computing optimisation. The company will also invest in marketing to boost brand visibility and build strategic partnerships with leading healthcare, finance, and media enterprises.
To date, NexGen Cloud has raised $59 million in total funding, $14 million from an early VC round in March 2022 and $45 million from its Series A round in April 2025. The company’s valuation now stands at $354 million.
How NexGen Cloud meets the diverse needs of AI enterprises and practitioners
NexGen Cloud was founded in October 2020 by Christopher Starkey and Youlian Tzanev. The company aims to democratise access to high-performance cloud computing, especially GPU-based infrastructure for AI applications, through pioneering distributed computing solutions.
NexGen Cloud offers specialized products and services to meet the varying needs of AI enterprises and practitioners. These include Private Clouds for large-scale sovereign AI environments and Hyperstack, an on-demand service that gives AI startups and developers enterprise-grade GPU access.
The company drives AI technology adoption by providing accessible, efficient, secure, and sustainable platforms. It addresses market challenges around cost, transparency, and accessibility while maintaining environmental responsibility through 100% renewable energy use.
The company’s technology roadmap focuses on advancing infrastructure services and launching new AI products that help enterprises integrate AI throughout their development cycle. These solutions enable serverless inference on dedicated virtual machines, giving customers enhanced privacy and data security control.
Behind Hyperstack: its flagship platform
Since launching its flagship platform Hyperstack in 2023, NexGen Cloud has generated €83.9 million in revenue for 2023 and 2024, achieving 380% growth in AI cloud operations. The platform has recorded a “2,272% increase in transactions year-on-year.”
Through Hyperstack’s AI-as-a-Service Cloud offering, the company provides AI computing capacity for large enterprises and on-demand users. NexGen Cloud manages “thousands of GPUs” with a 90% utilisation rate and serves over 10,000 users, including Red Hat, Ingenix.AI, Tyne, and ArchiLabs.
NexGen Cloud gained an early advantage in the GPU Cloud market by developing its own Application Programming Interface (API), enabling channel partners to deliver enterprise-grade AI computing through Hyperstack. The company also plans to launch Fine-Tuning-as-a-Service, helping customers adapt pre-trained AI models to specific use cases while optimizing resource allocation across AI clusters.
Ed Goode, CEO of Shadeform, commented on their partnership with NexGen Cloud, “NexGen has been an incredibly reliable partner as we’ve scaled our cloud marketplace. Their consistently dependable servers across all categories of GPU workloads — paired with top-tier support and performance — have been first class. We’re proud to be growing alongside their team and expanding fleet.”
