Tigris Data is certainly doing something special in the tech world right now. This new startup from the people that built Uber’s storage platform provides place-based data storage hubs connected into a regional network. The logistics company recently raised $25 million in a Series A funding round led by venture capital firm BlueRun Ventures. Spark Capital led the new round, joined by other existing investors including Andreessen Horowitz. This multibillion-dollar investment highlights the thriving market for new localized and more efficient data storage, especially among generative AI startups.
Ovais Tariq, co-founder and CEO of Tigris Data, says the startup is uniquely positioned to address the demands of today’s modern AI workloads. Their services are strategically designed to meet these dynamic demands. The company today counts more than 4,000 commercial and academic customers, most of those for creation of the types of image, video and voice models mentioned above. These models require massive datasets, which are sensitive to latency. Tigris Data is here to provide a better, more efficient alternative than the larger cloud providers.
The term “Big Cloud” commonly refers to major players in the cloud service industry such as AWS, Google Cloud, and Microsoft Azure. For Tariq, companies are more often looking for alternatives thanks to a newfound awareness of just how important data is. He states, “Companies are becoming more and more aware of how important the data is, how it’s fueling the LLMs, how it’s fueling the AI.”
One major trend pushing this change is the increasing demand from companies to have more control over their data. Tariq points out that there’s a desire among businesses to get away from larger providers for storage solutions. “They want to be more in control. They don’t want someone else to be in control of it,” he explains. This mindset is representative of a larger movement towards decentralized storage and computing practices. Organizations need to release the power of all their data, undaunted by the drawbacks of centralized services.
Tigris Data has established a network of localized storage hubs. This innovative network reaps the benefits of booming demand for distributed computing, which hyper-converged AI infrastructure combines. As Tariq puts it, “Modern AI workloads and AI infrastructure are choosing distributed computing instead of big cloud.” This method allows enterprises to leverage high-speed and ultra-reliable storage that meet their workload needs.
The challenge of excessive egress fees by the larger cloud providers has driven companies to consider alternatives. Tariq points out that these fees reveal a deeper problem: “Egress fees were just one symptom of a deeper problem: centralized storage that can’t keep up with a decentralized, high-speed AI ecosystem.” To alleviate these concerns, Tigris Data provides a distributed storage model. This method uses a simple, effective formula that gives a long-term fix for companies that are keen to maximize their data management.
Tigris Data’s innovative approach appeals particularly to generative AI startups such as Fal.ai, which previously allocated a significant portion of their cloud budgets to data storage with larger providers. As a result, these companies use Tigris Data’s services to keep a better handle on their costs. Along the way, they double down on their monopoly power over invaluable data resources.
Besides overcoming cost issues, Tigris Data’s localized data-storage solutions open up distinct advantages to real-time applications. Tariq imagines a world where users can use natural interfaces and get real-time feedback from AI agents which are doing all processing and analysis directly on-device. “Imagine talking to an AI agent that’s doing local audio,” he suggests, highlighting the potential for enhanced user experiences through localized computing capabilities.
As Tigris Data continues to grow and attract investment, its commitment to providing efficient storage solutions will likely resonate with an expanding market seeking alternatives to traditional cloud services. Tigris Data recognizes the importance of localized data storage to serve the unique requirements of generative AI developers. This step of the strategy furthers the company’s perception as a strong competitor to other large cloud titans.