Hosted.ai announced it has raised $19 million in seed funding to advance its mission of making AI infrastructure more efficient, accessible, and cost-effective for service providers, developers, and enterprises. The round was led by Creandum, with participation from Repeat VC and existing investors including People Ventures, Z21 Ventures, Golden Sparrow, Hersir Ventures, and Tekton.
The company is focused on addressing inefficiencies in GPU infrastructure, which it argues is currently underutilized and capital-intensive. Traditional GPU deployments require customers to provision fixed capacity based on peak demand, resulting in significant idle resources. Hosted.ai estimates that AI workloads typically use only around 40% of GPU capacity, leaving roughly 60% unused while still incurring costs.
This inefficiency creates major financial challenges for infrastructure providers, often referred to as neoclouds, which must commit large upfront investments to meet demand. At the same time, increasing demand for localized and low-latency GPU infrastructure, particularly as AI workloads shift toward inference, is further straining supply outside major hyperscalers.
Hosted.ai’s platform aims to solve these challenges through a software-based approach that enables GPU pooling, multi-tenant workload optimization, and overcommitment strategies. The company claims this can improve GPU utilization by up to five times, significantly reducing capital expenditure requirements while improving profitability.
In addition to its core GPU-as-a-service software platform, Hosted.ai is developing a broader ecosystem that includes packet.ai, a neocloud service powered by its customers’ infrastructure, and GPUaaS.com, a marketplace connecting enterprise buyers with GPU providers for large-scale deployments. The company is also planning a “GPU Mesh” capability that would allow providers to buy and sell excess GPU capacity, further increasing efficiency across the network.
Founded in 2024 and publicly launched in 2025, Hosted.ai was established by a team with deep experience in infrastructure and cloud technologies. The founding team previously played key roles in scaling UK2 Group and building OnApp, as well as contributing to initiatives at VMware, Expedia, XenSource, and NVIDIA. The company now operates across the U.S., EMEA, and Asia-Pacific.
The new funding will be used to expand the platform, grow partnerships, and accelerate geographic expansion as Hosted.ai positions itself as a foundational layer for the emerging GPU-driven AI economy.
KEY QUOTE:
“The GPU market has a waste problem, not a scarcity problem. We’ve spent 25 years building infrastructure software that makes service providers competitive and the GPU opportunity is the biggest we’ve seen. This funding lets us move faster: more platform, more partners, more regions. We’re building the operating system for the GPU economy, and this round puts us in a strong position to do exactly that.”
Ditlev Bredahl, CEO of Hosted.ai
