CloudZero provides a next-generation cloud cost optimization platform that automates the collection, allocation, and analysis of cloud costs to uncover savings and improve unit economics. It enables engineering-led cost management so companies can understand 100% of their operational cloud spend and connect cloud decisions directly to business outcomes. Customers named in the announcement include Coinbase, DraftKings, Expedia, Moody's, Nubank, Klaviyo, Miro, and Rapid7. The company reported another year of triple-digit growth and announced a $56 million Series C to fund expansion. CloudZero plans to invest the funding in AI-driven cost analytics and forecasting, deeper integrations across developer and finance workflows, and expansion of strategic partners and cloud alliances. The platform is positioned to help enterprises scale efficiently and improve unit economics as AI workloads reshape infrastructure needs. CloudZero provides engineering teams with a unified dashboard that combines cloud billing data with business- and system-level telemetry to show how much an individual product or feature costs. The platform ingests customers’ cloud, platform-as-a-service and software-as-a-service spend, normalizes it into a common data model, and uses hourly cloud spend data plus an AI algorithm to identify “abnormal” spend events. CloudZero plans to use the new funding to expand its platform and scale go-to-market efforts, with an emphasis on savings insights and self-service analytics. The company has over 100 customers, and CEO Phil Pergola said revenue has increased 10x since 2021, though he would not disclose absolute revenue figures. Co-founded by Erik Peterson and Matt Manger nearly 10 years ago, CloudZero positions itself in the FinOps market alongside players such as ProsperOps, Xonai, Vantage, Cast AI, Zesty, and larger vendors like VMware and Apptio. Pergola said demand for the platform is at an "all-time high" as customers focus on profitability and cloud cost visibility. CloudZero is advancing a SaaS-based site reliability platform that identifies system fragility so engineers can proactively optimize reliability. The platform continuously models the changing surface of a cloud system as it operates under pressure and provides insights that deliver trusted reliability. The product is currently in an invite-only beta and the company also announced an open source project, CloudZero Reactor for AWS, which normalizes AWS service metadata and provides an interface to query that information. The Reactor enables the CloudZero platform to model past, present and future states of systems, helping engineers discover and correct emergent behavior and understand its causes. CloudZero will use the funds to open its headquarters in Boston, grow its enterprise SaaS platform, and increase investment in its open source community. The company is led by founder and CEO Erik Peterson and recently closed a $5M Series A.

Total raised

$93M

Funding rounds

3

Latest round

Series C

Latest activity

May 2025