CloudZero Raises $56M as AI Drives Cloud Costs to $2 Trillion

Cloud cost management platform CloudZero has raised $56 million in Series C funding, marking a significant milestone for the Boston-based company that has achieved four consecutive years of triple-digit revenue growth. The funding round, led by BlueCrest Capital Management and Innovius Capital, positions CloudZero to capitalize on the explosive growth in cloud spending driven by AI adoption.

Strategic Investment in a Critical Market

The Series C round, which includes participation from Matrix Partners, Threshold Ventures, Underscore VC, and G20 Ventures, represents nearly double CloudZero’s previous $32 million Series B funding from 2023. MongoDB also made a strategic investment, signaling strong industry validation of CloudZero’s approach to cloud cost optimization.

The timing couldn’t be more strategic. Goldman Sachs forecasts that cloud computing revenues will reach $2 trillion by 2030, with AI workloads driving much of this growth. McKinsey research indicates that global demand for data center capacity could nearly triple by 2030, with approximately 70% of that demand coming from AI workloads.

The company enable engineers to build cost-efficient software without slowing down innovation. CloudZero’s next-generation cloud cost optimization platform automates the collection, allocation, and analysis of cloud costs to uncover savings opportunities and improve unit economics.

“Organizations that optimize their cloud costs gain a competitive advantage, while those that neglect cost management risk limiting their growth and innovation,” said Michael Platt, founder and CEO of BlueCrest Capital Management. “CloudZero gives customers financial control and predictability in the cloud — helping them boost profit, eliminate surprises, and reinvest in the next wave of innovation in critical areas like AI.”

Addressing the AI Infrastructure Challenge

CloudZero’s platform addresses a critical pain point for modern enterprises: understanding and controlling cloud costs in an era of rapidly expanding AI workloads. Traditional cloud cost management tools often fail to provide the granular visibility needed to optimize spending across complex, multi-cloud environments.

The company’s platform automates the collection, allocation, and analysis of cloud costs to uncover savings opportunities and improve unit economics. CloudZero is the only platform that enables companies to understand 100% of their operational cloud spend and take an engineering-led approach to optimization.

“AI is redefining what’s possible but without a deep understanding of cloud unit economics, innovation becomes unsustainable,” said Phil Pergola, CEO of CloudZero. “CloudZero is pioneering a new standard for cloud cost optimization, giving companies the precision they need to scale cloud and AI responsibly.”

Proven Results with Industry Leaders

CloudZero’s customer base includes some of the world’s most prominent technology companies, including Coinbase, DraftKings, Expedia, Klaviyo, Miro, Moody’s, New Relic, Nubank, and Rapid7. These organizations have leveraged CloudZero’s platform to achieve significant cost savings while scaling their operations.

The platform delivers measurable results: CloudZero customers save an average of 22% in their first year of using the platform. This level of cost reduction is particularly valuable given the accelerating pace of cloud spending across industries.

Investment Focus Areas

The Series C funding will enable CloudZero to accelerate development in three key areas:

AI-Driven Analytics and Forecasting: Enhanced machine learning capabilities to predict cost trends and identify optimization opportunities before they impact budgets.

Deeper Workflow Integration: Expanded integrations across developer and finance workflows to make cost optimization a seamless part of the development process.

Strategic Partnerships: Growth of CloudZero’s partner ecosystem and cloud alliances to provide customers with comprehensive cost management solutions across all major cloud providers.

Industry Validation and Future Vision

MongoDB’s strategic investment underscores the growing recognition that cloud cost optimization is evolving beyond simple cost-cutting measures.

“This was a perfect time to partner with CloudZero,” said Benjamin Cefalo, senior vice president of product management at MongoDB. “The future of FinOps goes far beyond simple cost-cutting,  it’s about cloud business efficiency. CloudZero is the only player in the market that truly understands this and is actively innovating toward that broader vision.”

Market Timing and Opportunity

The funding comes at a pivotal moment in cloud computing history. As organizations accelerate AI adoption, traditional approaches to cloud cost management are proving inadequate. The complexity of AI workloads, combined with the massive scale of modern cloud deployments, requires a new generation of cost optimization tools.

CloudZero’s engineering-led approach to cost optimization aligns with how modern development teams work, making it easier to embed cost consciousness into the development lifecycle rather than treating it as an afterthought.