AI cloud provider DataCrunch has raised $13 million in Seed funding.

The new funding round is planned to help the European company, founded in 2020 by Reuben Bryon, scale its infrastructure to meet growing demand, as reported by Tech EU and others.

The funding round was led by by Founders VC, while other participants included J12 Ventures, Aiven founder Oskari Saarenmaa, Smartly founder Tuomo Riekki and former AI researchers from the likes of DeepMind and Elo Health.

Return investors included insurance company Local Tapiola and Nordic bank Nordea. This funding round brings DataCrunch's total capital to $18 million.

“We are proud to lead this investment round for DataCrunch,” said Magnus Hambleton at byFounders. “Ruben and his team have built an incredibly efficient model that not only solves a pressing issue for AI companies, but also solidifies DataCrunch’s position as a key player in AI infrastructure.

"As the industry races to find solutions that are convenient, cost-effective, and scalable, we are pleased to support DataCrunch on its path to becoming the first European hyperscaler.”

The funding will also be used to help DataCrunch integrate Nvidia H200 servers to its offering, and next year will see the introduction of GB200 NVL72 clusters.

The European provider offers access to computing resources for AI workloads from its data centers in Finland and Iceland.

“DataCrunch was born out of frustration with the existing hyperscaler offerings. AI companies deserve better access to computing without the complexity and high costs that have become the industry norm,” said Bryon, the company's CEO.

“With this new round of funding, we are scaling our infrastructure to meet the growing demand, and firmly positioning ourselves as Europe’s leading provider of AI infrastructure.”

DataCrunch lists two data centers on its website - FIN-01 in Helsinki, Finland, which is powered by a combination of hydroelectric and wind power, and ICE-01 in Reykjanesbær, Iceland, which is powered by geothermal energy.