US-based DigitalOcean has acquired Paperspace, a cloud platform for developing and scaling artificial intelligence (AI) solutions, in an all-cash deal worth $111m.

DigitalOcean, which provides cloud services to small and medium-sized businesses (SMBs) and startups, aims to expand its product portfolio by integrating Paperspace’s technology into its platform.

Paperspace offers a cloud infrastructure as a service, which leverages graphics processing units.

It is expected to enable customers to test, build, and deploy artificial intelligence and machine learning (AI/ML) applications as well as augment and improve existing AI/ML applications.

The GPU-powered infrastructure and AI/ML-focused software solutions from Paperspace are key additions to DigitalOcean’s portfolio because of the rising demand for AI/ML cloud solutions, DigitalOcean noted.

DigitalOcean CEO Yancey Spruill said: “We are excited to expand our portfolio tailored to the world’s SMBs and startups with simplified AI/ML offerings. This acquisition marks a significant milestone in DigitalOcean’s journey to revolutionise how SMBs and startups harness the power of the cloud and AI/ML for their applications and businesses.

“The combined offerings allow customers to focus more on building applications and growing their businesses and less on the infrastructure powering them.”

Paperspace co-founder and CEO Dillon Erb said: “DigitalOcean is renowned for simplifying complex cloud technologies and making them more accessible to developers and business alike. We are thrilled to join forces with DigitalOcean, as we believe there is no better company to unlock the endless possibilities of AI/Ml for developers and businesses alike.”