A California-based artificial intelligence startup co-founded by Australians has announced it raised $1.5 billion in a new funding round, placing the company’s total valuation at $13 billion — a milestone that reflects the enormous wave of investment currently pouring into AI companies.
Baseten revealed late Monday that the funding round was spearheaded by U.S.-based investment firms Sands Capital and Wellington Management. Australian venture capital firm Blackbird VC also participated, contributing what it described as the largest single investment in the firm’s history, though the exact dollar amount was not disclosed.
The company’s core business involves selling software and infrastructure tools that allow other companies to build and customize their own AI models. Baseten positions itself as a more affordable option compared to well-known AI providers such as OpenAI and Anthropic.
Baseten reported that its revenue has expanded 20 times over the past year, driven by growing demand for what the industry calls “inference” — the process by which a trained AI model produces real-world results and outputs.
This latest fundraise marks the fourth time in just 18 months that Baseten has gone to investors for capital, reflecting strong appetite among backers for companies that provide the underlying infrastructure needed to bring generative AI into commercial use.
Blackbird partner Michael Tolo described the firm’s decision to increase its stake in Baseten as a show of confidence. “It’s a signal of conviction,” he said in a phone interview.
Tolo also suggested that Blackbird’s latest investment may rank as the largest ever made by an Australian venture capital firm. He added that for businesses incorporating AI into their technology systems, Baseten offers a competitive pricing advantage over rivals like OpenAI and Anthropic, calling it “the biggest shift that we’ve seen in both unit economics and competitive leverage within the AI market so far.”
Baseten said the newly raised funds will go toward expanding its computing capacity, developing additional software, and growing its workforce.
