Vultr Raises $333M at $3.5B Valuation

When DigitalOcean got it&#x27;s a16z money: <a href="https:&#x2F;&#x2F;x.com&#x2F;Vultr&#x2F;status&#x2F;489139385154420736" rel="nofollow">https:&#x2F;&#x2F;x.com&#x2F;Vultr&#x2F;status&#x2F;489139385154420736</a>

&quot;Cloud AI Startup Vultr&quot;<p>We really have let this go too far when a mid tier VPS provider is now a &quot;cloud AI startup&quot;.

I don&#x27;t remember the exact details, but I used to have a Vultr VPS (I think the smallest they had, for something like $2.50&#x2F;month) for a few years running OpenBSD. One day I noticed IPV6 had stopped working, so I emailed support after a while because I wasn&#x27;t sure if I had broken it during an upgrade a few months before or not (I don&#x27;t ever really specifically use IPV6). Anyways, got a super detailed reply back from support with the exact cause &#x2F; how to fix it that was specific to OpenBSD. I was pretty surprised they had someone replying to emails from a $2.50&#x2F;month customer who was actually knowledgeable about a fairly niche OS!

My experience with Vultr has been better than with any of the other smaller VM providers. They always seem to provide just a little extra, and don&#x27;t always nickle and dime you at every opportunity. I originally chose them because they most consistently had the best VM performance&#x2F;price measured by a third party.<p>The other thing that stands out in that space is that their pricing isn&#x27;t linear by vCPU and RAM. e.g. larger instances give better ratios and also offer bare-metal servers if you got to a scale and stability where that would be better suited.

I was a happy Vultr customer until the day I tried to get port 25 unblocked. Instead of getting it unblocked I received a ”sorry not sorry” copy paste from some senior sales guy.<p>I had spent thousands of dollars on their services running my servers for years.<p>Needless to say I immediately dumped them, moved to Hetzner and 1 week later I had my own mail server running(still do).

I use Vultr for a BGP anycast CDN (they let you bring your own ips) and they&#x27;re overall excellent. They also have budget GPU VPSes that are perfect for webgl screenshotting via chrome headless. Their sales rep gave me a 10% discount and we&#x27;re not even slightly in their high volume category. Extremely underrated VPS provider IMO, I&#x27;ve had better results with them than DO. I hope this development does not change things.

Gift link: <a href="https:&#x2F;&#x2F;www.wsj.com&#x2F;articles&#x2F;cloud-ai-startup-vultr-raises-333-million-at-3-5-billion-valuation-7f35f1a9?st=52KZKk&amp;reflink=desktopwebshare_permalink" rel="nofollow">https:&#x2F;&#x2F;www.wsj.com&#x2F;articles&#x2F;cloud-ai-startup-vultr-raises-3...</a>

WSJ blocked my request to view the page after making me do a captia to see it, and then only the first paragraph is visible on the Wayback Machine. The modern web is a joy to use.

I originally signed up with Vultr because they make it easy to set up an OpenBSD server, and I wanted to experiment with hosting my own mail server on OpenBSD. I&#x27;ve since expanded my usage with them and host everything on Vultr. Very satisfied with their service!

Are they bigger than DigitalOcean?<p>DigitalOcean is also currently valued at 3.5 billion right now, does ~800m ARR, 125m FCF, and profitable.<p>Anyone know how Vultr compares to this?

When they announced Bare Metal I was hoping it was closer to Hetzner, basically old fashion dedicated server.<p>AMD EPYC™ 9454P 48 Core &#x2F; 96 Threads, + 128 GB DDR5 ECC + 3.84 TB NVMe SSD for $221 and a $88 one time set up fee on Hetzner. Even if they could do it at $100 more expensive at $321 would still have been good enough.<p>But their Cloud &#x2F; VPS offering are still very good. Now that Linode is nearly gone. DO is mostly Intel based. Vultr is mostly AMD. The other one that is close if not better is UpCloud.

Interesting that this ends up posted on the same day I got this email from them for my VM hosting a vpn:<p>&quot;Our monitoring system indicated an issue with the hardware node hosting the instances listed in this email. A sudden reboot has been detected. Our engineering team is currently investigating the issue that caused this, but we expect no impact on data and&#x2F;or configurations.&quot;

I&#x27;ve started testing with vultr some because they offer affordable fractional GPUs. I think I had something running for about $60&#x2F;month with a &#x27;real&#x27; GPU. 1&#x2F;24th a GPU, IIRC, but... better than nothing. DO and linode offer GPU service, but the minimal cost just to get something up is significantly more.

Vultr was still sending me invoices despite explicitly canceling service. Horrible service and billing system.

This is awesome news. The more players in this market, the more validation we (Hot Aisle) have for the things we&#x27;ve been working on for over a year now.<p>Having spent a bunch of time talking in person with the Vultr team, they are a great group of people.

Real nvidia competition will come from innovating in chips, not this thing which is mostly focused on way higher levels (cloud)