Thunder Compute, a San Francisco-based startup, announced today that it has raised $13 million in a Series A funding round led by Matrix Partners, with participation from Y Combinator and CEAS Investments. The company is tackling the growing GPU capacity shortage by developing virtualization software that can harness the estimated $200 billion of idle compute power currently sitting unused in data centers worldwide.
The funding will enable Thunder Compute to scale its proprietary technology, which treats GPUs as network resources and operates transparently beneath workloads to significantly boost data center efficiency. According to the company, average GPU utilization is only about five percent, meaning the vast majority of expensive hardware is underused. By virtualizing these GPUs, Thunder Compute aims to unlock this dormant capacity and make it available to enterprises and developers who are struggling to secure the compute they need for AI and other intensive tasks.
“We are thrilled to have the support of Matrix Partners, Y Combinator, and CEAS Investments as we work toward a future where every GPU is virtualized,” said Carl Peterson, co-founder and CEO of Thunder Compute. “This funding will allow us to partner with enterprises and virtualize GPUs at scale, turning idle capacity into a valuable resource for the entire industry.”
The company was founded in 2022 by Carl Peterson, formerly a management consultant at Bain & Company, and Brian Model, previously a quantitative developer at Citadel Securities. Their vision is to create a more efficient and accessible GPU ecosystem by making virtualization the standard. The new capital will be used to expand the team, enhance the software, and forge strategic partnerships with data center operators and cloud providers.
The announcement comes at a time when the demand for GPUs is soaring, driven by the rapid growth of artificial intelligence, machine learning, and large-scale data processing. The shortage has led to long wait times and high costs for companies seeking compute resources. Thunder Compute’s approach offers a promising solution by maximizing the use of existing hardware, which not only helps meet demand but also reduces the environmental impact of manufacturing new chips.
“Thunder Compute is addressing a critical bottleneck in the AI infrastructure space,” said a spokesperson for Matrix Partners. “Their innovative virtualization technology has the potential to transform how GPUs are utilized, and we are excited to support their growth.”
For more information about Thunder Compute and its technology, visit their website at https://www.thundercompute.com/.
