Cloudflare launches new tools for AI agent development

SAN FRANCISCO - Cloudflare, Inc. (NYSE: NET), a technology company with impressive revenue growth of 28.76% in the last twelve months and a market capitalization of $33.48 billion, has announced the introduction of new products aimed at streamlining the creation and deployment of AI agents. The company’s latest offerings include the industry’s first remote Model Context Protocol (MCP) server, general availability of durable Workflows, and a free tier for Durable Objects. These advancements are designed to simplify the process for developers, enabling them to build AI agents quickly and at scale.According to InvestingPro analysis, Cloudflare maintains strong operational efficiency with a remarkable 77.32% gross profit margin, suggesting effective cost management in its core business operations.

AI agents are autonomous systems capable of making decisions and adapting to changes. They hold the potential for significant productivity improvements, but businesses often face challenges in developing agents that provide tangible returns. Cloudflare’s Developer Platform seeks to address these challenges by offering essential components for building scalable AI agents, such as AI models, workflows, and APIs, in a cost-effective manner.

Matthew Prince, co-founder and CEO of Cloudflare, emphasized the company’s commitment to providing developers with the necessary tools to build the future of AI agents. He highlighted Cloudflare’s interconnected network and developer platform as key enablers for rapid and scalable agent development. The company’s strong financial position is evident in its healthy current ratio of 2.86, indicating robust liquidity to support its ambitious development initiatives.

The remote MCP server allows AI agents to interact with external services over the internet, performing tasks like sending emails or booking meetings without a locally hosted server. Cloudflare’s partnerships with Auth0, Stytch, and WorkOS aim to simplify the process of granting permissions to agents, thus enhancing security.

With Durable Objects now available on the free tier, developers have broad access to a crucial component for building contextually aware AI agents. These objects combine compute with storage in a serverless environment, facilitating the creation of stateful applications without the need for infrastructure management.

Workflows, now generally available, provide a reliable way to build and manage multi-step applications that can run for extended periods. This feature is particularly useful for AI agent tasks that require persistence, such as booking travel arrangements.

Cloudflare’s serverless platform automatically scales AI inference and agent resources based on demand, allowing organizations to pay only for what they use. This model presents a cost-efficient alternative to traditional cloud deployments, which often require constant provisioning.

Kate Holterhoff, senior analyst at RedMonk, noted Cloudflare’s developer-friendly ecosystem and low-cost options as factors that could encourage broader adoption of AI agents.

Cloudflare, recognized for making AI inference more accessible, has deployed GPUs across its global network to minimize latency and enhance user experiences.

This expansion of Cloudflare’s Developer Platform is based on a press release statement and aims to address the growing demand for efficient and scalable AI agent development.

In other recent news, Cloudflare has made significant developments impacting its business and investor outlook. The company has announced the addition of three new members to its board of directors, including Stacey Cunningham, John Graham-Cumming, and Dr. Karim Lakhani, bringing a wealth of experience in finance, technology, and AI-driven business transformation. In terms of financial projections, Goldman Sachs has reiterated a Buy rating for Cloudflare with a price target of $161, highlighting the growth potential in AI inference and the expected increase in Annual Recurring Revenue (ARR) from the company’s Act III products.

Cloudflare’s recent Investor Day event also drew attention, with JMP analysts maintaining a Market Outperform rating and a $180 price target, citing the company’s continued innovation in AI and developer strategies. Additionally, TD Cowen has maintained a Buy rating and a $162 price target, noting Cloudflare’s commitment to achieving $5 billion in ARR by 2028 and its focus on expanding its enterprise presence. Cloudflare has also launched Cloudflare for AI, a suite of security tools designed to protect AI applications, emphasizing the company’s commitment to AI adoption with a security-first approach.

These developments underscore Cloudflare’s strategic focus on innovation and growth, as evidenced by its plans to double its global compute capacity and the introduction of new financial metrics. The company’s efforts to enhance its board with experts and its proactive approach to product development are seen as key factors in its growth trajectory. As Cloudflare continues to expand its market reach, its strategic initiatives are expected to drive value creation for shareholders.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.