Gruve announced it has unlocked more than 500 megawatts of distributed AI inference capacity across the United States and raised a $50 million follow-on Series A financing to accelerate deployments, expand strategic partnerships, and scale its full-stack agentic services. The company said the round brings total funding to $87.5 million and was led by Xora Innovation, backed by Temasek, with participation from Mayfield, Cisco Investments, Acclimate Ventures, AI Space, and other strategic investors.
The Redwood City-based company is positioning the announcement around a shift in AI workloads from model training toward production inference, arguing that infrastructure constraints are increasingly the limiting factor for deploying low-latency, high-throughput AI at sustainable economics. Gruve said much of today’s production inference still runs on systems not designed for cost-sensitive inference workloads, leading to high operating costs, technical debt, and weak unit economics, and it is marketing its Inference Infrastructure Fabric as an alternative engineered specifically for production-grade inference.
Gruve said its platform combines distributed capacity near Tier 1 and Tier 2 U.S. cities with modular, high-density rack-scale deployments, a low-latency edge fabric for orchestration across sites, and full-stack operations including a 24×7 AI-powered security operations center, network services, and cluster management. The company said it is bringing 30 megawatts live today across four U.S. sites, with additional capacity under development and plans for near-term expansions into Japan and Western Europe, framing the approach as a way to bypass multi-year data center build cycles and bring AI-ready capacity online in months.
The company said its distributed inference model is aimed at neoclouds scaling inference at the edge, enterprises deploying real-time agents and mission-critical AI workloads, and AI-native startups moving from prototype to production. By placing inference closer to users and data sources, Gruve said it can reduce latency and operating costs while improving reliability, supporting customers that need to scale production AI without sacrificing performance or economics.
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“Over the past decade, Lineage has made significant investments in resilient infrastructure as well as energy optimization and transition. We are now partnering with Gruve to strategically repurpose our excess power capacity to support next-generation AI applications while creating value for our shareholders.”
Sudarsan Thattai, Chief Technology Officer And Chief Information Officer, Lineage
“Gruve’s innovative modular compute for inferencing enables us to utilize stranded power capacity in our data center. Gruve’s high density AI Inference Infrastructure requires far less real estate footprint, which is a game changer in a highly space and power constrained Silicon Valley market.”
Scott Brookshire, Chief Technology Officer And Co-Founder, OpenColo By American Cloud
“As AI shifts from training to inference, the industry faces a critical infrastructure gap. Models continue to advance rapidly, but the systems running them in production haven’t kept pace. Economics, latency, and operational rigor now determine whether AI can scale in the real world. What excites us is that Gruve is taking a fundamentally different approach to enterprise AI by building the infrastructure and services layer that makes production AI viable at enterprise scale. We’re excited to deepen our partnership with Tarun and the Gruve team as they help enterprises, neoclouds, and AI-native startups unlock AI’s true speed to scale.”
Navin Chaddha, Managing Partner, Mayfield
“Gruve’s Inference Infrastructure Fabric combines modular state-of-the-art pods with a distributed network architecture to enable rapid capacity deployment in power- available locations today — without compromising on latency. As demand for inference accelerates, scalable, low-latency infrastructure with strong unit economics is increasingly critical, and Gruve is well position to meet that need as it scales in 2026.”
Phil Inagaki, Managing Partner And Chief Investment Officer, Xora Innovation
“We’re launching our Inference Infrastructure with 30MW across four U.S. sites, immediate capacity available nationwide, and near-term expansions in Japan and Western Europe. Combined with our 24×7 AI-powered SOC, inference fabric and infrastructure operations, Gruve is ready to support customers at true production scale.”
Tanuj Mohan, GM And SVP, AI Platform Services, Gruve
