**Bootstrapping to Success: How Runpod’s Founders Built a $120 Million AI Cloud Business**
I recently came across the story of Runpod, a AI cloud startup that’s somehow managed to achieve a $120 million run rate in just a few short years. The founders, Zhen Lu and Pardeep Singh, are a duo of friends turned entrepreneurs who took a rather unorthodox path to success. As a developer, I was fascinated by their journey from mining Ethereum to building a cloud platform that’s now attracting major clients like Replit, OpenAI, and Zillow.
It all started when Lu and Singh were working for Comcast, where they had a side project mining Ethereum. But, as they soon discovered, it wasn’t the lucrative venture they thought it would be. With their investment at risk, they had to get creative. They repurposed their mining rigs into AI servers and built a platform that allowed developers to host AI apps. It was a major pivot, but it paid off.
Here’s where things get interesting. Lu and Singh posted on Reddit, offering free access to their AI servers in exchange for feedback. This led to a small but dedicated community of beta testers, which eventually grew into paying clients. Within nine months, they hit the $1 million mark. That’s when they knew they were onto something big.
However, as their business took off, they encountered a new challenge: how to scale quickly and efficiently. They formed partnerships with data centers to expand their capacity, but it was a nerve-wracking time. They knew they had to stay ahead of the curve and meet the growing demand from developers.
That’s when they were introduced to Radhika Malik, a partner at Dell Technologies Capital, who became a valuable guide and mentor. She not only shared her expertise but also connected them with her network. The result was a $20 million seed funding deal co-led by Dell and Intel, alongside other notable investors.
Fast forward to today, Runpod has over 500,000 developers as clients, spanning from individuals to Fortune 500 companies. Their cloud is now available in 31 locations globally, and they’ve secured partnerships with some of the biggest names in the industry.
The landscape is competitive, with major players like AWS, Microsoft, and Google offering their own cloud services. But, according to Lu, Runpod is different – it’s a dev-centric platform that’s tailored to the needs of the next generation of software developers. “Our goal is to be what this next generation of software developers grows up on,” he said.
The story of Runpod is a testament to the power of perseverance, creativity, and adaptability. It’s a reminder that even the most unconventional ideas can become a massive success with the right execution and timing.
