Paperspace
2023
$111M
Why
GPU cloud and machine learning platform.
Impact
Foundation for DigitalOcean's GPU and AI services.
Outcome
Integrated into DigitalOcean's AI platform.
DigitalOcean
Cloud InfrastructureFounded 2011- HQ today: Broomfield, Colorado, United States
Reviewed by Swet Parvadiya
Company data updated: October 2026
Acquisitions
DigitalOcean Acquisitions
3
Major Deals Covered
$461M
Disclosed Deal Value
What are DigitalOcean's biggest acquisitions?
DigitalOcean's largest disclosed acquisition here is Cloudways for $350M in 2022. This page covers 3 major deals from 2022 to 2023, each with its price where disclosed and the reason behind it.
- Major deals covered
- 3
- Largest deal
- Cloudways ($350M)
- First deal
- 2022
- Most recent
- 2023
| Company | Year | Price | Purpose |
|---|---|---|---|
| Cloudways | 2022 | $350.0M | Managed hosting platform for agencies and SMBs. |
| CSS-Tricks | 2022 | Undisclosed | Front-end web development publication added to DigitalOcean's developer content. |
| Paperspace | 2023 | $111.0M | GPU cloud and machine learning platform. |
- What companies has DigitalOcean bought?
- Major acquisitions by DigitalOcean documented here include Cloudways (2022), Paperspace (2023) and CSS-Tricks (2022).
- What is DigitalOcean's most recent acquisition?
- The most recent DigitalOcean acquisition documented here is Paperspace, in 2023, for $111M.
Cloudways
2022
$350M
Why
Managed hosting platform for agencies and SMBs.
Impact
Added a managed hosting customer base and higher-revenue accounts.
Outcome
Operates as Cloudways by DigitalOcean.
CSS-Tricks
2022
Why
Front-end web development publication added to DigitalOcean's developer content.
DigitalOcean's Growth & Acquisition Strategy
DigitalOcean's strategy under Paddy Srinivasan has two tracks. First, move upmarket: its number of $100K+ customers grew 9% in Q2 2026 while their revenue grew 98%, and $1M+ customers generated 23% of revenue. Second, become an inference and agentic AI platform: it combines GPU Droplets (NVIDIA and AMD), serverless inference, the Inference Engine, and agent tooling with its existing compute, storage, and databases. It funds this with operating cash flow, committed data center leases, and capital markets activity such as repurchasing about $472 million of its 2030 convertible notes in 2026.
How DigitalOcean Makes Money
DigitalOcean sells cloud infrastructure on usage-based and monthly pricing. Customers pay for Droplet virtual machines, GPU instances, managed Kubernetes, managed databases, object and block storage, bandwidth, App Platform, Cloudways managed hosting plans, and AI inference (billed by usage or tokens). Most customers sign up self-serve with a credit card, which keeps acquisition costs low, while a direct sales team now targets larger "digital native" and AI-native accounts. In 2026 it began signing multi-year commitments, including its first nine-figure annual contracts, which lifted remaining performance obligations (RPO) to $894 million at June 30, 2026, up from $71 million a year earlier.
DigitalOcean Acquisitions FAQ
What are the most notable acquisitions in DigitalOcean's history?
DigitalOcean's largest acquisitions are Cloudways (2022, about $350 million) and Paperspace (2023, $111 million). Smaller deals include Server Density (2018), Nanobox (2019), and CSS-Tricks (2022).
Why was the 2022 acquisition of Cloudways for $350 million significant?
Cloudways gave DigitalOcean a managed hosting business for agencies and SMBs that do not want to manage servers themselves, widening its market beyond developers.
How did the 2023 acquisition of Paperspace for $111 million enhance DigitalOcean's AI capabilities?
Paperspace brought GPU cloud infrastructure and machine learning tooling, which became the base for DigitalOcean's GPU Droplets and later its AI-Native Cloud.
What technology did DigitalOcean acquire through Nanobox in 2019?
DigitalOcean acquired Nanobox to use its micro-platform and container deployment technologies, which became foundational building blocks for the launch of the DigitalOcean App Platform (PaaS) in 2020.
Why did DigitalOcean acquire Server Density in 2018?
DigitalOcean acquired UK-based server monitoring startup Server Density to integrate real-time infrastructure performance monitoring, automated alerting, and CPU/RAM health metrics natively into every customer's Droplet dashboard.
What is DigitalOcean's current M&A philosophy under CEO Paddy Srinivasan?
DigitalOcean pursues strategic, capital-efficient acquisitions that expand its developer tooling, enhance AI/ML developer workflows, and broaden SMB managed services without taking on excessive debt or operational complexity.
What companies has DigitalOcean acquired?
In 2022, they acquired Cloudways for $350 million to make WordPress and PHP hosting even simpler. In 2023, seeing the massive boom in AI, they executed a brilliant $111 million acquisition of Paperspace to instantly offer highly affordable GPU cloud computing.
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