SAN FRANCISCO: Cloud infrastructure startup Railway announced a $100 million Series B funding round led by TQ Ventures, positioning the platform to challenge legacy cloud providers as artificial intelligence accelerates software development beyond traditional infrastructure capabilities.
The round included participation from FPV Ventures, Redpoint, and Unusual Ventures, bringing Railway’s total funding beyond $130 million. Founder and CEO Jake Cooper disclosed annual recurring revenue exceeds $10 million, according to reports.
Cooper said, “As AI models get better at writing code, more and more people are asking the age-old question; where, and how, do I run my applications? The last generation of cloud primitives were slow and outdated, and now with AI moving everything faster, teams simply can’t keep up.”
Railway rebuilt software and hardware infrastructure from the ground up to eliminate configuration complexity, operating custom data centers with proprietary networking and orchestration. The platform handles approximately 100 billion requests monthly across six million microservices, 20 million deploys, and a quarter-trillion logs for two million users.
Customers report a 10x increase in developer velocity and up to 65% cost savings compared to traditional cloud platforms. Railway charges only for actual usage, avoiding markups common in overprovisioned legacy infrastructure.
The platform serves 31 percent of Fortune 500 companies including Intuit’s GoCo, TripAdvisor’s Cruise Critic, and MGM Resorts, alongside thousands of AI-native startups. Railway achieved 176x revenue growth while adding nearly 200,000 developers monthly.
Schuster Tanger, co-founding partner of TQ Ventures, commented, “Railway is building the infrastructure layer that will power the next era of software. Jake Cooper is an extraordinary talent under whose leadership Railway’s Zero-Ops architecture has been purpose-built for an AI-native world.”
The funding will expand Railway’s global data center footprint, grow its team, and develop tools designed for both human developers and AI systems as the company pursues enterprise adoption.
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