NexGen Cloud raises $45M to expand AI GPU infrastructure across Europe

Funding to strengthen AI compute capacity amid rising demand

NexGen Cloud, a London-headquartered cloud infrastructure company, has secured $45 million in Series A funding, aiming to expand its GPU-as-a-Service offerings across Europe. The funding round was led by Moore & Moore Investment Group, with participation from individual investors and family offices. The startup's platform focuses on delivering cost-efficient, scalable, and renewable-powered GPU infrastructure, addressing the core challenges of compute cost, scalability, and data compliance that many AI-driven enterprises face in the region.

The company stated that the investment will be directed toward hiring engineers specialising in AI infrastructure and cloud optimisation, while also growing its presence in verticals such as healthcare, finance, and media. Another portion of the funding will support marketing efforts to improve visibility and support the establishment of strategic partnerships. Following this round, NexGen Cloud’s total funding has reached $59 million, including an earlier $14 million raised in March 2022, with its current valuation standing at $354 million.

Building tailored cloud services for AI developers and enterprises
Founded in October 2020 by Christopher Starkey and Youlian Tzanev, NexGen Cloud focuses on making high-performance computing more accessible through decentralised GPU infrastructure. The company provides private cloud setups for enterprises requiring sovereign AI environments, as well as Hyperstack, its on-demand GPU platform designed to serve AI developers and startups in need of enterprise-grade compute.

The company’s operations are entirely powered by renewable energy, aligning with sustainability goals while addressing critical concerns around cost and data privacy regulations. The technology roadmap includes serverless inference via dedicated virtual machines and new AI-focused tools for enterprise integration.

Revenue growth driven by Hyperstack launch

Launched in 2023, Hyperstack has emerged as the company’s flagship service, helping NexGen Cloud achieve €83.9 million in revenue for 2023 and 2024, while recording 380% growth in AI cloud usage. Transaction volumes surged 2,272% year-on-year, according to company data.

Currently, the platform supports over 10,000 users, with a GPU utilisation rate of 90%, serving names such as Red Hat, Ingenix.AI, Tyne, and ArchiLabs. The company attributes part of its growth to the development of its own API, which allows channel partners to deliver enterprise-grade GPU services directly via Hyperstack.

Future plans and partner feedback

As part of its product roadmap, NexGen Cloud plans to introduce a new service offering — Fine-Tuning-as-a-Service — aimed at helping enterprises refine pre-trained models for specialised use cases. This solution will also optimise GPU resource distribution across AI clusters.

Ed Goode, CEO of Shadeform, highlighted the strength of the partnership, stating: “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.”

As demand for high-performance AI computing infrastructure continues to rise across Europe, NexGen Cloud is positioning itself to meet the challenge with a scalable and regulation-compliant approach.