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General Compute raises $100 million Series A, countering the neocloud disaster narrative

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General Compute raises $100 million Series A, countering the neocloud disaster narrative

CoreWeave, a publicly traded neocloud that rents out computing power for AI, has seen its stock price fall to a 12-month low, and Elon Musk is flexing $40 billion in debt for buying computing capacity and predicting that “200+ neoclouds are going to see guppy-level death and consolidation.” It’s not exactly the ideal week to announce a Series A for a neocloud.

General Compute co-founder and CEO Finn Puklowski is unfazed. He’s bullish on CoreWeave’s chances, and thinks Musk is just talking his book to drive down the prices of the GPUs he wants to buy. Fears of a chip-led collapse are “massively overstated. I have people calling me up every single week asking me to do TPUs, GPUs, any chip, to get them more compute.”

Just as important, he says, Anthropic’s bullish S-1 is “settling fears for today.”

General Compute has found a niche building its cloud out of specialized inference chips built by Nvidia rivals. The company struck a $400 million deal to purchase new chips from SambaNova—the first debt financing of inference chips—and now has added Positron and Cerebras to its portfolio of chip suppliers.

A deal with a large customer worth $100 million in annual recurring revenue has paved the way for the company to raise $100 million in Series A funding led by Blackbird Ventures and Abstract Ventures. Valued at $60 million after a May seed round, General Compute is now worth $800 million post-money to its investors.


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