GPU Marketplace Andromeda Hits $1.5 Billion Valuation After $60 Million Paradigm Investment

Andromeda, the on-demand compute marketplace, announced a $60 million funding round led by venture firm Paradigm. This investment values the San Francisco and Miami-based company at $1.5 billion, marking its official entry into unicorn territory. The firm intends to use the capital to expand its managed network from tens of thousands to over 100,000 GPUs by the end of 2026.

Scaling the GPU Liquidity Layer

The startup serves as a critical bridge between organizations with idle high-performance hardware and AI labs in need of flexible access. Unlike traditional cloud providers that require multi-year commitments, Andromeda allows developers to rent power for short durations. The platform currently supports over 100 compute providers and has processed more than 1,000 transactions to date. Originally launched in 2023 as an internal resource for portfolio companies of investors Nat Friedman and Daniel Gross, the project evolved into a standalone entity. Under the leadership of its current executive team, the company has seen its annualized revenue run rate double to over $100 million. Remarkably, the marketplace reports it has maintained profitability since its initial launch phase.

Transparency Through Data

A key feature of the platform is the Andromeda Pricing Index, which provides real-time transparency for GPU costs globally. Current listings show competitive rates for cutting-edge hardware, including NVIDIA H100s at $2.03 per hour and upcoming Blackwell B300 units at $3.72 per hour. This data-driven approach helps teams benchmark their spending and negotiate better terms in a volatile market. The company specifically targets the mid-market segment of the AI industry, focusing on startups that spend between $250 million and $500 million annually on infrastructure. By offering standardized SLAs and a single billing channel, Andromeda simplifies the complex logistics of sourcing specialized chips. This focus on liquidity and transparency positions the firm as a central hub for the rapidly evolving compute economy.