DigitalOcean CEO Paddy Srinivasan says the company should not be grouped with "neocloud" providers that compete mainly by renting out GPU capacity, arguing instead that it sells a complete cloud platform designed for AI agents to run on.
DigitalOcean · AI infrastructure
"We don't just sell GPUs": DigitalOcean argues it is not a neocloud
CEO Paddy Srinivasan says the company sells a complete cloud platform built for AI agents to run on, setting it apart from neocloud providers that mainly rent out GPU capacity.
The positioning
Where DigitalOcean says its value sits
LAYER 1
Raw GPU capacity
Compute rented by the hour. The core offer of neocloud rivals, competing on price and availability.
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LAYER 2
Cloud platform
Services developers need to build, deploy and operate applications: orchestration, hosting and integration.
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LAYER 3
AI agents in production
Agents move from experiments to production workloads, where the software layer becomes the differentiator.
Layer structure reflects the company's own framing of its pitch, not an independent assessment.
The company's case
Sells a broader cloud environment, not only compute.
Designed as a place where AI agents can execute tasks.
Described as "different by design" from raw-capacity providers.
Points to its customer base as evidence of real use.
What remains unproven
No independent benchmarks were provided.
No pricing comparison with rival neoclouds.
Customer details were not fully laid out.
Claimed difference is the company's own characterization.
What would settle the question
The bet: developer-friendly services, not hardware access, will drive growth as agent software spreads.
Customer adoption
Managed services
Margins
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