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BROOMFIELD, Colo. - DigitalOcean Holdings, Inc. (NYSE:DOCN), a cloud infrastructure provider with a market capitalization of $2.68 billion and impressive gross margins of 60%, announced Wednesday the general availability of its DigitalOcean GradientAI Platform, a managed service that allows developers to build AI applications by combining their data with foundation models from Anthropic, Meta, Mistral and OpenAI. According to InvestingPro data, the company maintains strong financial health with a "GOOD" overall rating.
The platform, previously known as GenAI Platform, enables customers to deploy generative AI capabilities to their applications without managing infrastructure. According to the company’s announcement, users can create AI agents through retrieval augmented generation (RAG) that can be integrated into their applications. This strategic move comes as DigitalOcean continues to show solid revenue growth of 13.2% over the last twelve months.
The service provides function routing to connect with third-party APIs and agent routing to link with other GenAI agents within the platform. It also offers serverless LLM inference, allowing customers to access models from multiple providers through a single API with usage-based billing.
"We built DigitalOcean GradientAI because generative AI can be complex – and DigitalOcean has always focused on making the complex simple," said Bratin Saha, Chief Product and Technology Officer at DigitalOcean.
The platform includes customization features such as guardrails designed to block sensitive information and maintain appropriate outputs. Users can also run evaluations to verify performance improvements.
Aaron Kettl, founder of Quikest, stated, "With the DigitalOcean GradientAI Platform, I can easily set up all of my agents and integrate them into my product with very little code."
The announcement comes as digital native enterprises increasingly seek to integrate generative AI capabilities into their operations. The company stated in its press release that the platform aims to address fragmentation in the current generative AI ecosystem by providing tools and data through a unified interface. For investors seeking deeper insights into DigitalOcean’s potential, InvestingPro offers comprehensive analysis with additional ProTips and detailed financial metrics in its Pro Research Report, available exclusively to subscribers.
In other recent news, DigitalOcean Holdings, Inc. reported its Q1 2025 earnings, surpassing analyst expectations with an EPS of $0.56 compared to the forecasted $0.42. Revenue also exceeded projections, reaching $211 million, marking a 14% year-over-year increase. Despite these positive results, the company’s stock experienced a decline, attributed partly to concerns over the refinancing of $1.5 billion in convertible debt. In another development, DigitalOcean announced the availability of new GPU Droplets featuring NVIDIA RTX 4000, RTX 6000, and L40S GPUs to support AI workloads. These enhancements aim to broaden the company’s offerings for AI applications. Additionally, DigitalOcean introduced custom roles for its Role-Based Access Control (RBAC) on its cloud platform, allowing for more tailored security measures. JMP Securities maintained a Market Outperform rating for DigitalOcean, setting a price target of $55.00. This decision followed the company’s recent collaboration with AMD to advance AI using cloud-based GPUs.
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