DigitalOcean Simplifies AI Infrastructure Deployment with New Flexible GPU Droplets, Powered by NVIDIA H100

Rhea-AI Summary

DigitalOcean Holdings (NYSE: DOCN) has announced the general availability of GPU Droplets, offering easy-to-deploy advanced AI infrastructure on a pay-as-you-go model. Powered by NVIDIA H100 GPUs, these Droplets are available in single-node and multi-node configurations, simplifying AI development and experimentation.

Key features include:

• Simple setup with a few clicks or a single API call
• Cost-friendly 1X and 8X configurations
• Managed Kubernetes service with NVIDIA H100 GPU support
• No upfront investment in costly hardware required

DigitalOcean is also planning to launch a generative AI platform to further simplify AI application development, including pre-built components like hosted LLMs and easy-to-use data ingestion pipelines.

Positive

• Introduction of GPU Droplets powered by NVIDIA H100 GPUs for advanced AI infrastructure
• Pay-as-you-go model with flexible configurations (1X and 8X) to suit various needs and budgets
• Simplified setup process compared to other cloud providers
• Expansion of managed Kubernetes service to support NVIDIA H100 GPUs
• Planned launch of a generative AI platform to further simplify AI application development

Negative

• None.

Insights

Tech Expert

DigitalOcean's launch of GPU Droplets powered by NVIDIA H100 GPUs is a significant move in the cloud computing space. This offering democratizes access to high-performance AI infrastructure, particularly benefiting startups and small to medium-sized businesses. Key advantages include:

• Pay-as-you-go model, reducing upfront costs
• Simplified deployment process, lowering technical barriers
• Flexible configurations (1X and 8X GPU options)
• Integration with DigitalOcean's API and Kubernetes service

This positions DigitalOcean competitively against larger cloud providers, potentially attracting AI-focused developers and companies. The planned generative AI platform further strengthens their AI ecosystem, potentially driving customer acquisition and retention. However, the impact on revenue and market share remains to be seen, given the competitive landscape dominated by AWS, Azure and Google Cloud.

Financial Analyst

This product launch could positively impact DigitalOcean's financial performance. Key financial implications include:

• Potential for increased revenue from high-value AI workloads
• Improved customer retention and possible expansion of average revenue per user (ARPU)
• Market share growth in the rapidly expanding AI infrastructure market

However, investors should consider:

• Initial capital expenditure for GPU infrastructure
• Potential margin pressure due to competitive pricing
• Execution risks in a highly competitive market

The stock may see positive momentum if the company demonstrates strong adoption metrics and revenue growth from this new offering. Long-term success will depend on DigitalOcean's ability to scale this service and effectively compete with larger cloud providers in the AI space.

Among Industry-first offerings include pay-as-you-use virtualized GPU Droplets and Kubernetes support

NEW YORK--(BUSINESS WIRE)-- DigitalOcean Holdings, Inc. (NYSE: DOCN), the simplest scalable cloud, today announced general availability of easy-to-deploy advanced AI infrastructure, available in a pay-as-you-go model through the new DigitalOcean GPU Droplets. With the new GPU Droplets, AI developers can simply and quickly run AI experiments, train large language models, and scale AI projects - all without complex configurations or large capital investments.

With these latest offerings, DigitalOcean now offers a range of flexible, high-performance GPU solutions — including on-demand virtual GPUs, managed Kubernetes, and bare metal machines — that empower developers and growing businesses to accelerate AI/ML implementations.

Powered by the powerful NVIDIA H100 GPUs, purpose-built for next-gen AI applications, DigitalOcean GPU Droplets are available in cost-friendly single-node configurations as well as multi-node configurations. Unlike other cloud providers that require several steps and technical knowledge to configure security, storage, and network requirements, DigitalOcean GPU Droplets can be set up with a few clicks on a single page. DigitalOcean API users also will enjoy the benefits of the simple setup and management as GPU Droplets come fully integrated into the DigitalOcean API suite and can be spun up with a single API call.

The company is also expanding its managed Kubernetes service to support NVIDIA H100 GPUs, bringing the full power of H100-enabled worker nodes to Kubernetes containerized environments.

These advanced AI infrastructure offerings lower the barriers to AI development by providing fast, easy, and affordable access to high-performance GPUs without requiring upfront investments in costly hardware. The new building blocks, available immediately, are:

• DigitalOcean GPU Droplets: NVIDIA H100 GPU virtual servers, available in 1X and 8X configurations. While other cloud providers only offer the more expensive 8X configuration that includes a full rack of eight NVIDIA GPUs, DigitalOcean is offering Droplets with as little as one NVIDIA H100, providing fast-growing companies with exactly the computing power that they need, at a price that they can afford.
• DigitalOcean Kubernetes GPU Support: Managed Kubernetes service supports NVIDIA H100 GPUs, available in 1X and 8X configurations

Customers such as Story.com are already leveraging powerful H100 GPUs from DigitalOcean to train their models and scale their businesses.

“Story.com's GenAI workflow demands heavy computational power, and DigitalOcean’s GPU nodes have been a game-changer for us,” said Deep Mehta, CTO and Co-Founder of Story.com. “As a startup, we needed a reliable solution that could handle our intensive workloads, and DigitalOcean delivered with exceptional stability and performance. From seamless onboarding to rock-solid infrastructure, every part of the process has been smooth. The support team is incredibly responsive and quick to meet our requirements, making it an invaluable part of our growth.”

“We’re making it easier and more affordable than ever for developers, startups, and other innovators to build and deploy GenAI applications and move them into production,” said Bratin Saha, Chief Product and Technology Officer at DigitalOcean. “To do that, they need access to advanced AI infrastructure without the added cost and complexity. Our GPUs as a service open this opportunity to a much broader user base.”

Today’s announcement is one of many steps that DigitalOcean is taking on its roadmap to offer AI platforms and applications. The company’s forthcoming innovations include a brand new generative AI platform designed to make it easier for customers to configure and deploy the best AI solutions for their needs, including agents such as chatbots. With these innovations, DigitalOcean aims to democratize AI application development by simplifying the otherwise complex AI tech stack. It will provide pre-built components like hosted LLMs, offer easy to use data ingestion pipelines, and allow customers to leverage their knowledge bases, allowing them to easily create AI-powered applications.

To learn more, or to spin up your first DigitalOcean GPU Droplet today, visit https://www.digitalocean.com/products/gpu-droplets#sign-up-form.

About DigitalOcean

DigitalOcean simplifies cloud computing so businesses can spend more time creating software that changes the world. With its mission-critical infrastructure and fully managed offerings, DigitalOcean helps developers at startups and growing digital businesses rapidly build, deploy and scale - whether creating a digital presence or building digital products. DigitalOcean combines the power of simplicity, security, community and customer support so customers can spend less time managing their infrastructure and more time building innovative applications that drive business growth. For more information, visit digitalocean.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241001712494/en/

Media

Dan Jensen

press@digitalocean.com

Investors

Melanie Strate

investors@digitalocean.com

Source: DigitalOcean Holdings, Inc.

FAQ

What are DigitalOcean's new GPU Droplets and how do they benefit AI developers?

DigitalOcean's new GPU Droplets are easy-to-deploy AI infrastructure solutions powered by NVIDIA H100 GPUs. They benefit AI developers by providing simple, quick, and affordable access to high-performance GPUs for running AI experiments, training large language models, and scaling AI projects without complex configurations or large capital investments.

How does DigitalOcean's GPU Droplet offering differ from other cloud providers?

DigitalOcean offers more flexible configurations, including single-node (1X) and multi-node (8X) setups, while other providers typically only offer the more expensive 8X configuration. DigitalOcean's GPU Droplets can be set up with a few clicks on a single page, simplifying the process compared to other providers that require multiple steps and technical knowledge.

What support does DigitalOcean offer for Kubernetes with its new GPU offerings?

DigitalOcean is expanding its managed Kubernetes service to support NVIDIA H100 GPUs, available in 1X and 8X configurations. This brings the full power of H100-enabled worker nodes to Kubernetes containerized environments, making it easier for developers to deploy and manage AI workloads in a containerized setting.

What future AI-related developments is DigitalOcean (DOCN) planning?

DigitalOcean is planning to launch a new generative AI platform designed to simplify AI application development. This platform will include pre-built components like hosted LLMs, easy-to-use data ingestion pipelines, and the ability to leverage knowledge bases, making it easier for customers to create AI-powered applications.