The problem we're solving
Cloud providers give the deepest discounts to companies that commit to one to three years of spending. AI has made that bet much harder to place. A new model launch can multiply GPU spend in a few months, and a cheaper model or a migration can cut it just as fast.
So most teams face a bad choice: overcommit and pay for capacity they don't use, or undercommit and leave savings on the table. Most choose the second.
We think that trade-off is unnecessary. Companies shouldn't have to predict the future of AI to save money on the infrastructure they use today.
Where we are today
- More than $700 million in savings delivered to customers
- About $5.6 billion in annual cloud and AI spend under management
- About 2,200 organizations, including PubNub, Art.com and Astronomer
- Guaranteed Commitments on AWS, Microsoft Azure and Google Cloud, with terms as short as 30 days
If usage declines and a covered commitment goes unused, Archera covers the cost under the terms of its guarantee. Archera purchased a policy on a surplus lines basis from Crum & Forster Specialty Insurance Company to back this guarantee.
In their words
"Every tool in this market is trying to forecast your cloud usage a little better. We think that's the wrong bet. Nobody can forecast AI demand, not the customer, not the cloud provider. So instead of predicting it, we guarantee it, and we have purchased an insurance policy to back that guarantee. If covered usage drops, we address the unused commitment cost under the terms of our guarantee. That's a new way to purchase cloud, not another dashboard, and it's why we've been able to return $700 million to our customers."
Aran Khanna, co-founder and CEO, Archera
"Archera has built a capital-efficient and differentiated business at the intersection of cloud infrastructure and risk management. The team pairs a deep understanding of the cloud ecosystem with a rigorous approach to underwriting, and the result is a compelling value proposition that a fast-growing roster of customers relies on as their cloud spend scales. We are privileged to have led this Series C round and look forward to working closely with Aran and the management team in the years ahead."
Dinkar Jetley, co-founder and managing partner, Pivot Investment Partners
"Working with Archera meant rethinking commitments as a spectrum rather than a single, high-stakes decision. This was a big mind shift for us. We needed to think about how our commitments could be broken up into a spectrum of purchases versus a single one-time buy."
James Hamilton, VP of Operations & Controller, PubNub
What's next
Archera has been operating profitably at scale. We raised this round to support larger guarantees and serve more customers. The new capital will help us:
- Accelerate go-to-market
- Expand our global partner network across North America, Europe, the Middle East, Japan and Latin America
- Serve more teams running AI-driven workloads
Thank you
To our customers, partners, and investors, and to the Archera team who built this: thank you. We're just getting started.
Read the full story on USA TODAY
Want to see what Archera could save you? Get a free savings assessment.
AWS
Azure
Google Cloud
