π TOPINDIATOURS Breaking ai: Railway secures $100 million to challenge AWS with AI
Railway, a San Francisco-based cloud platform that has quietly amassed two million developers without spending a dollar on marketing, announced Thursday that it raised $100 million in a Series B funding round, as surging demand for artificial intelligence applications exposes the limitations of legacy cloud infrastructure.
TQ Ventures led the round, with participation from FPV Ventures, Redpoint, and Unusual Ventures. The investment values Railway as one of the most significant infrastructure startups to emerge during the AI boom, capitalizing on developer frustration with the complexity and cost of traditional platforms like Amazon Web Services and Google Cloud.
"As AI models get better at writing code, more and more people are asking the age-old question: where, and how, do I run my applications?" said Jake Cooper, Railway's 28-year-old founder and chief executive, in an exclusive interview with VentureBeat. "The last generation of cloud primitives were slow and outdated, and now with AI moving everything faster, teams simply can't keep up."
The funding is a dramatic acceleration for a company that has charted an unconventional path through the cloud computing industry. Railway raised just $24 million in total before this round, including a $20 million Series A from Redpoint in 2022. The company now processes more than 10 million deployments monthly and handles over one trillion requests through its edge network β metrics that rival far larger and better-funded competitors.
Why three-minute deploy times have become unacceptable in the age of AI coding assistants
Railway's pitch rests on a simple observation: the tools developers use to deploy and manage software were designed for a slower era. A standard build-and-deploy cycle using Terraform, the industry-standard infrastructure tool, takes two to three minutes. That delay, once tolerable, has become a critical bottleneck as AI coding assistants like Claude, ChatGPT, and Cursor can generate working code in seconds.
"When godly intelligence is on tap and can solve any problem in three seconds, those amalgamations of systems become bottlenecks," Cooper told VentureBeat. "What was really cool for humans to deploy in 10 seconds or less is now table stakes for agents."
The company claims its platform delivers deployments in under one second β fast enough to keep pace with AI-generated code. Customers report a tenfold increase in developer velocity and up to 65 percent cost savings compared to traditional cloud providers.
These numbers come directly from enterprise clients, not internal benchmarks. Daniel Lobaton, chief technology officer at G2X, a platform serving 100,000 federal contractors, measured deployment speed improvements of seven times faster and an 87 percent cost reduction after migrating to Railway. His infrastructure bill dropped from $15,000 per month to approximately $1,000.
"The work that used to take me a week on our previous infrastructure, I can do in Railway in like a day," Lobaton said. "If I want to spin up a new service and test different architectures, it would take so long on our old setup. In Railway I can launch six services in two minutes."
Inside the controversial decision to abandon Google Cloud and build data centers from scratch
What distinguishes Railway from competitors like Render and Fly.io is the depth of its vertical integration. In 2024, the company made the unusual decision to abandon Google Cloud entirely and build its own data centers, a move that echoes the famous Alan Kay maxim: "People who are really serious about software should make their own hardware."
"We wanted to design hardware in a way where we could build a differentiated experience," Cooper said. "Having full control over the network, compute, and storage layers lets us do really fast build and deploy loops, the kind that allows us to move at 'agentic speed' while staying 100 percent the smoothest ride in town."
The approach paid dividends during recent widespread outages that affected major cloud providers β Railway remained online throughout.
This soup-to-nuts control enables pricing that undercuts the hyperscalers by roughly 50 percent and newer cloud startups by three to four times. Railway charges by the second for actual compute usage: $0.00000386 per gigabyte-second of memory, $0.00000772 per vCPU-second, and $0.00000006 per gigabyte-second of storage. There are no charges for idle virtual machines β a stark contrast to the traditional cloud model where customers pay for provisioned capacity whether they use it or not.
"The conventional wisdom is that the big guys have economies of scale to offer better pricing," Cooper noted. "But when they're charging for VMs that usually sit idle in the cloud, and we've purpose-built everything to fit much more density on these machines, you have a big opportunity."
How 30 employees built a platform generating tens of millions in annual revenue
Railway has achieved its scale with a team of just 30 employees generating tens of millions in annual revenue β a ratio of revenue per employee that would be exceptional even for established software companies. The company grew revenue 3.5 times last year and continues to expand at 15 percent month-over-month.
Cooper emphasized that the fundraise was strategic rather than necessary. "We're default alive; there's no reason for us to raise money," he said. "We raised because we see a massive opportunity to accelerate, not because we needed to survive."
The company hired its first salesperson only last year and employs just two solutions engineers. Nearly all of Railway's two million users discovered the platform through word of mouth β developers telling other developers about a tool that actually works.
"We basically did the standard engineering thing: if you build it, they will come," Cooper recalled. "And to some degree, they came."
From side projects to Fortune 500 deployments: Railway's unlikely corporate expansion
Despite its grassroots developer community, Railway has made significant inroads into large organizations. The company claims that 31 percent of Fortune 500 companies now use its platform, though deployments range from company-wide infrastructure to individual team projects.
Notable customers include Bilt, the loyalty program company; Intuit's GoCo subsidiary; TripAdvisor's Cruise Critic; and MGM Resorts. Kernel, a Y Combinator-backed startup providing AI infrastructure to over 1,000 companies, runs its entire customer-facing system on Railway for $444 per month.
"At my previous company Clever, which sold …
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π Sumber: venturebeat.com
π TOPINDIATOURS Breaking ai: Salesforce rolls out new Slackbot AI agent as it batt
Salesforce on Tuesday launched an entirely rebuilt version of Slackbot, the company's workplace assistant, transforming it from a simple notification tool into what executives describe as a fully powered AI agent capable of searching enterprise data, drafting documents, and taking action on behalf of employees.
The new Slackbot, now generally available to Business+ and Enterprise+ customers, is Salesforce's most aggressive move yet to position Slack at the center of the emerging "agentic AI" movement β where software agents work alongside humans to complete complex tasks. The launch comes as Salesforce attempts to convince investors that artificial intelligence will bolster its products rather than render them obsolete.
"Slackbot isn't just another copilot or AI assistant," said Parker Harris, Salesforce co-founder and Slack's chief technology officer, in an exclusive interview with Salesforce. "It's the front door to the agentic enterprise, powered by Salesforce."
From tricycle to Porsche: Salesforce rebuilt Slackbot from the ground up
Harris was blunt about what distinguishes the new Slackbot from its predecessor: "The old Slackbot was, you know, a little tricycle, and the new Slackbot is like, you know, a Porsche."
The original Slackbot, which has existed since Slack's early days, performed basic algorithmic tasks β reminding users to add colleagues to documents, suggesting channel archives, and delivering simple notifications. The new version runs on an entirely different architecture built around a large language model and sophisticated search capabilities that can access Salesforce records, Google Drive files, calendar data, and years of Slack conversations.
"It's two different things," Harris explained. "The old Slackbot was algorithmic and fairly simple. The new Slackbot is brand new β it's based around an LLM and a very robust search engine, and connections to third-party search engines, third-party enterprise data."
Salesforce chose to retain the Slackbot brand despite the fundamental technical overhaul. "People know what Slackbot is, and so we wanted to carry that forward," Harris said.
Why Anthropic's Claude powers the new Slackbot β and which AI models could come next
The new Slackbot runs on Claude, Anthropic's large language model, a choice driven partly by compliance requirements. Slack's commercial service operates under FedRAMP Moderate certification to serve U.S. federal government customers, and Harris said Anthropic was "the only provider that could give us a compliant LLM" when Slack began building the new system.
But that exclusivity won't last. "We are, this year, going to support additional providers," Harris said. "We have a great relationship with Google. Gemini is incredible β performance is great, cost is great. So we're going to use Gemini for some things." He added that OpenAI remains a possibility as well.
Harris echoed Salesforce CEO Marc Benioff's view that large language models are becoming commoditized: "You've heard Marc talk about LLMs are commodities, that they're democratized. I call them CPUs."
On the sensitive question of training data, Harris was unequivocal: Salesforce does not train any models on customer data. "Models don't have any sort of security," he explained. "If we trained it on some confidential conversation that you and I have, I don't want Carolyn to know β if I train it into the LLM, there is no way for me to say you get to see the answer, but Carolyn doesn't."
Inside Salesforce's internal experiment: 80,000 employees tested Slackbot with striking results
Salesforce has been testing the new Slackbot internally for months, rolling it out to all 80,000 employees. According to Ryan Gavin, Slack's chief marketing officer, the results have been striking: "It's the fastest adopted product in Salesforce history."
Internal data shows that two-thirds of Salesforce employees have tried the new Slackbot, with 80% of those users continuing to use it regularly. Internal satisfaction rates reached 96% β the highest for any AI feature Slack has shipped. Employees report saving between two and 20 hours per week.
The adoption happened largely organically. "I think it was about five days, and a Canvas was developed by our employees called 'The Most Stealable Slackbot Prompts,'" Gavin said. "People just started adding to it organically. I think it's up to 250-plus prompts that are in this Canvas right now."
Kate Crotty, a principal UX researcher at Salesforce, found that 73% of internal adoption was driven by social sharing rather than top-down mandates. "Everybody is there to help each other learn and communicate hacks," she said.
How Slackbot transforms scattered enterprise data into executive-ready insights
During a product demonstration, Amy Bauer, Slack's product experience designer, showed how Slackbot can synthesize information across multiple sources. In one example, she asked Slackbot to analyze customer feedback from a pilot program, upload an image of a usage dashboard, and have Slackbot correlate the qualitative and quantitative data.
"This is where Slackbot really earns its keep for me," Bauer explained. "What it's doing is not just simply reading the image β it's actually looking at the image and comparing it to the insight it just generated for me."
Slackbot can then query Salesforce to find enterprise accounts with open deals that might be good candidates for early access, creating what Bauer called "a really great justification and plan to move forward." Finally, it can synthesize all that information into a Canvas β Slack's collaborative document format β and find calendar availability among stakeholders to schedule a review meeting.
"Up until this point, we have been working in a one-to-one capacity with Slackbot," Bauer said. "But one of the benefits that I can do now is take this insight and have it generate this into a Canvas, a shared workspace where I can iterate on it, refine it with Slackbot, or share it out with my team."
Rob Seaman, Slack's chief product officer, said the Canvas creation demonstrates where the product is heading: "This is making a tool call internally to Slack Canvas to actually write, effectively, a shared document. But it signals where we're going with Slackbot β we're eventually going to be adding in additional third-party tool calls."
MrBeast's company became a Slackbot guinea pigβand employees say they're saving 90 minutes a day
Among Salesforce's pilot customers is Beast Industries, the parent company of YouTube star MrBeast. Luis Madrigal, the company's chief information officer, joined the launch announcement to describe his experience.
"As somebody who has rolled out enterprise technologies for over two decades now, this was practically one of the easiest," Madrigal …
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π Sumber: venturebeat.com
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