Together AI’s $305M bet: Reasoning models like DeepSeek-R1 are increasing, not decreasing, GPU demand

Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More When DeepSeek-R1 first emerged, the prevailing fear that shook the industry was that advanced reasoning could be achieved with less infrastructure. As it turns out, that’s not necessarily the case. At least, according to Together AI, the rise of DeepSeek and open-source reasoning has had the exact opposite effect: Instead of reducing the need for infrastructure, it is increasing it. That increased demand has helped fuel the growth of Together AI’s platform and business. Today the company announced a $305 million series B round of funding, led by General Catalyst and co-led by Prosperity7. Together AI first emerged in 2023 with an aim to simplify enterprise use of open-source large language models (LLMs). The company expanded in 2024 with the Together enterprise platform, which enables AI deployment in virtual private cloud (VPC) and on-premises environments. ... Read full article.