DigitalOcean Buys Paperspace To Boost AI Capabilities
Portfolio Pulse from Lekha Gupta
DigitalOcean Holdings Inc (DOCN) has acquired Paperspace for $111 million in cash. The acquisition will enhance DigitalOcean's AI/ML capabilities and expand its serviceable market. The company expects the acquisition to have an immaterial impact on 2023 results but to enhance revenue growth in 2024 and beyond.

July 06, 2023 | 1:26 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
DigitalOcean's acquisition of Paperspace is expected to enhance its AI/ML capabilities and expand its market. The impact on 2023 results is expected to be immaterial, but revenue growth is expected in 2024 and beyond.
The acquisition of Paperspace, a company offering cloud infrastructure for scalable applications leveraging GPUs, will enhance DigitalOcean's offerings and expand its market. This is expected to have a positive impact on DigitalOcean's stock in the long term, despite the company stating that the impact on 2023 results will be immaterial. The company's CFO has stated that the acquisition will enhance revenue growth in 2024 and beyond.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100