We @DigitalOcean are different by design.
That starts with who we serve, what we build and how we monetize our infrastructure:
→ 680,000 paying customers, spanning a broad base of developers and businesses.
→ A full cloud platform: compute, storage, databases, inference and agent execution.
→ Software that creates multiple revenue streams from the capacity we bring online.
→ A differentiated financial profile: 60%+ growth guidance for 2027 with positive operating margin and cashflow
As agents move into production, they need memory, data, orchestration and secure sandboxes. Bringing these capabilities together on one cloud creates value for customers and increases the revenue we can generate from every megawatt.
Our growth equation has two levers: expanding capacity and delivering more software value on that capacity.
In this interview, I explain how that architecture shapes our business and why we’re built for the agentic era. 👇
$DOCN
youtube.com/watch?v=DlcoL62B…
Introducing Cuttlefish: control your agents on @DigitalOcean from your iPhone.
Run Codex, Claude Code or OpenCode in persistent, hardware-isolated cloud sandboxes. From your phone:
→ Follow sessions and steer agents as they work.
→ Approve or deny tool calls.
→ Inspect files and preview what your agents build.
→ Checkpoint, fork, pause and resume sessions.
The architecture matters: execution and working state live in the cloud. Your agents keep running when your phone is locked, offline or the app is closed.
Durable execution. Mobile supervision. Your choice of agent.
Another step toward the cloud built for agents and the people directing them.
Cuttlefish is now in public preview.
Meet Cuttlefish
digitalocean.com/blog/introd…
Day zero and Kimi K3.1 Pro is now LIVE on @digitalocean serverless inferencing
.@Kimi_Moonshot K3.1 Pro is #4 of 221 models on the @ArtificialAnlys Intelligence Index (as of Oct 23), and you can download the weights.
It’s now on DigitalOcean Serverless Inference. Upgrading from K3 is a one-string change. do.co/4xsz0fI
$321M in Q3 revenue. 40% YoY growth. 45% adjusted EBITDA margin. A record $160M in incremental ARR.
Our fifth consecutive quarter of accelerating growth at @DigitalOcean.
Behind these results is a clear shift: customers are adopting our complete AI-Native Cloud to help agents think, act and improve.
→ Token volume grew ~10x quarter over quarter.
→ ~90% of AI customer revenue came from customers also using Core Cloud.
→ Our software makes our megawatts more valuable: $18M ARR per average active megawatt across our fleet.
We’re raising our outlook again: we now expect 44–45% revenue growth in Q4 and 60%+ for full-year 2027.
A complete platform. A diversified customer base. Disciplined financial execution. Different by design.
Thank you to our customers and the DigitalOcean team. The agentic era is here, and we’re building the cloud for it. $DOCN
We are going to be busy !! Our @digitalocean team is bringing Agent Flow and Token Flow conversations to BoxWorks (@Box), LanceDB Reverie (@lancedb), SGLang Summit (@sgl_project), @TomorrowXSummit, and Founders You Should Know (@foundersysk).
Come find us. We’d love to hear what you’re building, what’s working, and where you’re getting stuck.
If you’re building with agents, models or data, we’ll probably be in the same room this month. @Box|Works, @lancedb Reverie, @sgl_project Summit, @TomorrowXSummit, @foundersysk, plus a happy hour with @sgl_project after their Summit. Come find us.
Better agents need a learning loop: run, evaluate, improve.
Join us Nov 12 in SF with @NVIDIAAI, @sgl_project and @MLHacks after SGLang Summit for lightning talks and demos on building agents that learn from experience.
Request your spot: do.co/48pUak2
Most agents ship once and stay the same. The best ones learn from every run.
Nov 12 in SF: happy hour with @NVIDIAAI, @sgl_project, and @MLHacks after SGLang Summit. Lightning talks and demos on building that loop. Request your spot: do.co/48pUak2
It’s not that difficult to just pick the best Inference Provider. Looks like the data is suggesting @digitalocean 😁
Picking a good inference provider is difficult.
Picking the best inference provider for an open model is surprisingly hard: The reason: no single provider does it all. On OpenRouter, GLM 5.3’s GPQA score ranges from 78% to 89% (quite a large gap, despite the caveats†), and the trends in GPQA is not strongly correlated with other tasks, so it varies by workload.
Why discuss this now?
Recently, Jon Barron and colleagues showed that standard softmax implementations hide two silent bugs: Softmax Collapse, where the target gradient rounds to zero, and Softmax Cancellation, where identical logits still produce a gradient. Widely speaking, inference has the same problem, except it's harder to get something agreed to be a 'correct' outcome.
In my experience, providers on alternative chips tend to have worse silent framework bugs, though these issues are apparent on NVIDIA inference frameworks as well.
MoE models are especially fragile: the router bias and router output need fp32, etc. (there's a long list of half-patched issues). As deployment engines grow more complex, these bugs get almost exponentially harder to catch.
(Note†: SGLang or vLLM in their default configurations should give the best accuracy. The issue come from what providers add, like some custom quantization, speculative decoding, and custom kernels, or even simply forgetting to update to the latest versions of the frameworks that improve accuracy. And consider the case where you have no open reference at all (i.e they take care of both post-training and inference, so you don't own your own canon copy of the model, where you wouldn't know if there's some error in the stack silently reducing your quality).
Agent autonomy needs permissions enforced at execution time.
That’s why we built Action Gateway in @digitalocean Managed Agents: credentials stay outside model context, each gateway tool call gets an allow/deny/ask decision, and human approval applies to the exact action proposed.
Even agent-written code chaining tools follows the same rules. It cannot approve its own next step.
A model’s suggestion to call a tool is a request, not authority.
Action Gateway keeps credentials out of model context and checks every tool call against policy: allow, deny, or ask a human. It aligns with @nvidia’s Open Agent Safety Platform. do.co/4ierrTS
You can now manage your @digitalocean infrastructure straight from @bot
11 skills for DigitalOcean, including product guidance, App Platform deploys and logs, managed databases, and cost estimates before you take billable actions
Get started: Install the DigitalOcean app in Grokbot, then ask it to deploy an app, check your balance, or provision something!
x.ai/bot/plugin/79762613
Day0 launch of @MiniMax_AI M3.1 Flash model on @digitalocean Serverless today
.@MiniMax_AI reports 73.67% on DeepSWE and 72.5% on AutomationBench-AA, which it calls the best result among open models.
M3.1 Flash is now on DigitalOcean Serverless Inference and Dedicated Inference. $0.15 input, $0.60 output per 1M tokens. do.co/4xsz0fI
can someone from @SpaceX pls help ?
This week’s PHP2Shell disclosures and the AI-assisted attacks involving ConnectWise show how quickly the security equation is changing. In some cases, attackers reached privileged cloud access in under three hours.
As we give agents the ability to execute code, call APIs and use credentials, we need enforceable boundaries around every action. Which systems can they access? Where can they send data? What happens when they exceed their permissions?
My view: those controls belong in the infrastructure, outside the agent’s own reasoning loop.
That’s why I’m excited that @digitalocean is supporting @nvidia's OpenShell Reference Architecture. It brings together Vera Rubin for inference, Vera CPUs and OpenShell for agent execution, and BlueField-4 DPUs running NVIDIA Sentry for independent monitoring and policy enforcement in silicon.
An agent’s effective permissions matter as much as its model’s capabilities. Building an AI-native cloud means taking responsibility for both.
Read NVIDIA’s announcement
blogs.nvidia.com/blog/cloud-…
Now available on @digitalocean Serverless - @deepseek_ai 's v4.1 Flash 1017
.@deepseek_ai reports V4.1 Flash 1017 scores 77.0 on DeepSWE v1.1, up from 74.2 on V4.1 Flash, with shorter outputs and faster task completion.
Now on DigitalOcean Serverless Inference and Dedicated Inference. Already on V4.1 Flash? Switch to deepseek-v4.1-flash-1017 and keep the same endpoint and Model Access Keys. do.co/4xsz0fI
If you have feedback on our console experience, please DM @ld_do_ from our product team. Genuinely interested in making the experience better and we will send some cool swag your way !!
Beam from @reflection_ai is now on @digitalocean.
501B parameters, 23B active per token. Reflection reports comparable reasoning quality with ~3x fewer reasoning tokens.
For production agents, efficiency matters on every turn.
.@reflection_ai reports Beam matches leading open models on quality with about 3x fewer reasoning tokens. It's a 501B sparse MoE with only 23B active per token, and Reflection's first open-weight model.
Now on DigitalOcean Serverless Inference and Dedicated Inference. $0.40 input, $1.20 output per 1M tokens. do.co/4xsz0fI
Paddy Srinivasan retweeted
Some things never change; latencies matter in agentic scenarios (else you run the risk of having the agent drop you in a free market). With 20,000+ tools and counting, Action Gateway continues to perform world class in selection of tool and latencies for tool calling scenarios. Blog coming next week, but like you know already I like to share our sneak peeks 👀
If you'd like to learn more, check out Managed Agents: digitalocean.com/blog/manage…
An agent’s unit of work is an entire execution loop:
Model call → tool invocation → code execution → state update → a different model call → evaluation.
One user request can repeat that loop dozens of times. Inference latency, context reuse, runtime startup, credential handling and state persistence all affect the cost and reliability of completing the task.
That changes what the cloud needs to optimize.
A fast model endpoint helps. So does a fast sandbox. But every handoff between services can introduce another network hop, authentication boundary, failure mode or gap in the trace. Those costs compound across the loop.
At @DigitalOcean, we’re building these primitives to work together:
• Inference routing with visibility into the serving layer and opportunities for KV-cache reuse.
• Isolated microVMs that pause while an agent waits and resume when execution is needed, with active CPU billing.
• Governed tool access through MCP, with credentials brokered at invocation so secrets stay outside the agent’s context.
• Persistent agent data, execution traces and evaluations that help teams identify failures and test improvements.
The optimization target is cost, latency and reliability per successfully completed task.
And there’s a longer-term opportunity: using the history of those tasks to improve the application’s prompts, tools, memory and workflows.
Bring your model and harness. Build intelligence that becomes more valuable with use.
@jenukal goes deeper on the architecture 👇
A hypothesis: agents don't need a sandbox. They need a platform that thinks, acts, remembers, and improves as one system.
There's a debate running this week about sandboxes. One camp says sandboxes are dead and the future is a private cloud for every agent. Another says a sandbox is a compute primitive, like Postgres or Redis, and primitives don't win markets, platforms do. A third says sandboxes are a winner-takes-most market. I think all three are arguing about one layer of the problem.
My hypothesis is that agents are the first workload that exercises every layer of a platform inside a single loop. They think, they act on real systems, they remember, and they improve.
A web server touched compute and maybe a database. An agent touches inference, execution, tools, storage, retrieval, telemetry, and evaluation, in one task, often in less than a minute. So what an agent needs isn't a better sandbox. It's a platform where those four things run as one system. If that's right, the unit of competition isn't the sandbox and it isn't the model. It's the integrated cloud for agents.
Whoever builds one that's compelling across agents, data, and model access at the same time wins.
Let’s start with how an agent actually runs. One “prompt” fans out into a dozen model calls, a web search, a database query, a code execution, a tool call with a credential, a checkpoint, and a trace. Today a typical team buys those from five or six vendors and glues them together. Six vendors means fifteen seams. Every seam is an integration someone maintains, a credential someone stores, a network hop that adds latency, an egress fee, and a place where the trace dies.
Point solutions are excellent but partial: most sandbox companies don't run inference, and model companies don't manage agent memory or observability. The loop is what breaks on a stitched stack.
Models have to be routable, and routing only works when inference sits next to the agent. Every few weeks a new model tops a chart. Open-weight models went from <20% of token volume on our Inference Engine in April to >85% by August.
My read: the model is the most swappable layer in the stack, so you want a router in front of it, not a hard-coded choice. We built an Inference Router for that. On Kimi K3 we see an aggregate cache-hit rate above 90% across our own workloads. The router has to know what the inference layer has cached, and the cache has to sit next to the sandbox that's going to need it. That's a function call on one platform.
The agent and harness layer is where the business logic lives, so the runtime has to be built for it. I believe the harness, its prompts, its tool permissions, its memory, and its evals will hold more of a company's business logic than the model ever will. The model is rented. The agent is yours. So we built Managed Agents from the ground up as purpose-built primitives, not VMs with an agent sticker on them. Every session gets its own Firecracker microVM, resumes from pause in a few hundred milliseconds, and is billed for active CPU at $0.044 per vCPU-hour, so the wait costs zero. Action Gateway gives agents governed access to 20K+ tools across 600+ providers through one MCP endpoint, matched intent to tool with 99%+ accuracy in our testing, and brokers credentials at call time. The agent never sees the key. You can only make that promise when the runtime, the gateway, and the secret store are the same system.
Data and recursive loops are what make an application more intelligent over time. This is the part I believe in most and the part with the least proof so far, because the products are weeks old. The hypothesis: two teams start with the same model and the same harness, and within a quarter they diverge, and the one with the loop wins. On DigitalOcean the loop runs on two services. Agent Data Services is one governed catalog where video, documents, logs, and agent sessions land agent-ready and searchable by meaning. Agent Learning Services closes the loop: Insights records every step, Signals flags the sessions where the agent stalled, looped, or lost the user, and Evaluations and Simulations test the fix before a customer sees it. In an internal demo, an optimized support agent went from failing to passing it with 90% fewer input tokens.
Intelligence stops being something you rent via models and becomes something your application accumulates, tuned to the exact problem it's solving.
And the whole thing has to go down to the floor. DigitalOcean builds the routing model and the microVM runtime operates the GPUs they run on, across 20 data centers with NVIDIA HGX B300 and AMD MI350X fleets.
Much of the agent infrastructure market rents GPUs from someone who rents a data center from someone else, with margins stacked on margins. My view is that active CPU billing, a warm KV cache next to the sandbox, and a router that can see the inference layer are only possible when you control the data center, the hardware, and the software as one stack.
The obvious objection is that "integrated" is a polite word for lock-in. I'd argue the opposite, and I think it's the real test of whether a platform is integrated or just bundled. Integration should be about removing seams, not closing doors. Bring Claude Code, Codex CLI, OpenCode, Hermes, LangGraph, or your own OCI image. Hit one endpoint compatible with OpenAI, Anthropic, and 60+ Open models. Bring your own key for a frontier model, or run open weights we host. Our routing model and the proxy under it are open source.
The point is that the seams are gone, not that the exits are.
One early signal that the hypothesis might be right: roughly 70% of our large AI customers have attached a one or more platform primitives. Agents come in through inference or a sandbox and pull the rest of the cloud behind them. That's what I'd expect if agents really do need every layer at once.
So, back to the debate. The platform that wins won't be the one with the best sandbox, and I don't think it'll be the one with the best model.
My bet is on the platform where an agent thinks, acts, remembers, and improves as one system.
DM me if you are interested in trying our Agent primitives.
#digitalocean #agents #Agenticloop #learning #Context #sandbox #Runtime #DOCN
Paddy Srinivasan retweeted
Oh lordy 🙇 dropping some goodies on Monday. I’ll get sandbox start time < 100ms (and this is hardware isolated virtual machines, not containers) over the next three months. Owning your stack is the only way to create outsized value. To be precise: “Harness Ready” means hr_sandbox.exec is ready to run commands.
If you haven't checkout MARS (Managed Agents) from DigitalOcean id encourage you to give it a 👀. Tokens + Agentic Compute + Action Gateway (20,000+ tools) as a neatly integrated stack with unit economics that are really hard to replicate, it really is the best place to scale your agents
digitalocean.com/blog/manage…
Tune in at 1 pm PT to hear how we at @digitalocean are reimagining the Cloud in the Agentic era along with @nvidia and other partners. Live stream link below














