AI deployment network Parasail has launched with $10 million in Seed Funding.
The company's offering brings together a global GPU compute supply including Nvidia H100s, H200s, A100s, and 4090s which it claims is larger than Oracle's GPU fleet.
An AI deployment network offering connecting multiple GPU cloud providers, Parasail connects companies to GPUs and, via its orchestration engine, automatically matches workloads across a GPU network. According to the company, its "plug-and-play inference" means that workloads only run when necessary, which reduces idle costs.
“Most cloud providers make the false promises of on-demand compute, and they fail to deliver on that promise,” said Mike Henry, founder and CEO of Parasail. “In reality, legacy cloud providers use small amounts of compute capacity to lure customers into long-term contracts. At Parasail, we are providing the first real-time, true on-demand access to massive compute without the hidden constraints.”
Speaking to DCD, Henry explained that the company emerged from a "customer problem."
"Customers want to easily deploy AI models. They have certain constraints - like how fast it can be done, how cheaply, and where they want to deploy it geographically speaking. They don't really want to deal with the complex world of GPU providers and different types of hardware. We built an AI platform that connects all these different providers together, and we have more on-demand capacity than Oracle's entire GPU fleet," Henry said.
A grand statement, this does come with some caveats. "It's the power of aggregation where we've looked at the providers we are working with and seeing what we can take and turn into on-demand capacity for our customers. We're not there yet in terms of what we actually have in our fleet, but we did the math and saw that if we need to push it to hundreds of thousands of GPU, it is there in the network."
Henry added that while there may be talk about GPU shortages, he disputes this. "If you look at a single provider, like AWS, it feels like there is a GPU shortage. But if you aggregate everyone who's building GPU infrastructure, there's no shortage."
This is certainly true, with new GPU cloud providers seeming to pop up or existing providers adding to their GPU fleets on a close to weekly basis. March 2025 alone saw Tata Communications launching its Vayu cloud, Neon Cloud launching, as well as the arrival of alt GPU cloud, and Cartagon.ai, among others.
Henry said that he is not concerned about an oversaturation of the market. "I don't really think there is a limit to the demand side. We didn't decide to build another GPU cloud, we looked at what customers wanted - great prices on demand, the latest hardware, the best speeds, etc."
He added: "I don't think there's over saturation at all, I think we're just getting started to be honest."
Regarding whether the company will see Blackwell GPUs joining its fleet, Henry said that it will be coming, but that he expects Hopper to be "pretty dominant" for the next year, and to still be a "workhorse for the next seven to ten years" as the price will become more and more favorable.
Parasail claims it can reduce costs for companies migrating from OpenAI or Anthropic by 15-30x, and offer an additional two to five times cost advantage over other open-source providers.
“Legacy cloud providers weren’t built for AI, making it difficult and expensive for AI-native companies to access the compute they need. Parasail’s deployment network gives teams fast, affordable access to high-performance infrastructure—so they can focus on building and shipping breakthrough AI products,” said Tim Harris, co-founder of Parasail.
The company has been founded with a $10 million Seed Funding round led by Basis Set Ventures, Threshold Ventures, Buckley Ventures, and Black Opal Ventures. The company was founded by Mike Henry who previously founded AI hardware company Mythic and worked as interim chief product officer at Groq, and Tim Harris, CEO of Swift Navication.
