Daily News Cards | חדשות יומיות בכרטיסים

VentureBeat

The agent security gap: 54% of enterprises have already had an AI agent incident, and most still let agents share credentials

Across 107 enterprises, AI agents are being given real access to systems and data while the controls meant to contain them lag behind. More than half have already had a confirmed agent security incident or a near-miss; only about a third give every agent its own scoped identity, and most agents still share credentials; and only three in ten isolate their highest-risk agents. The security stack is overwhelmingly borrowed from the model providers and hyperscalers rather than purpose-built for agents, spending remains a thin slice of the security budget, and enterprises are evenly split on whether their defenses are keeping pace with AI-enabled attackers. The result is an agent security gap — autonomous agents proliferating faster than the identity, isolation, and enforcement controls needed to hold them. This wave of VentureBeat Pulse Research examines how enterprises secure their AI agents: what tooling they run, how they manage agent identity and isolation, what has already gone wrong, how much they spend, and whether they believe their defenses are keeping pace with AI-enabled attackers. The central finding is an agent security gap — the distance between the autonomy enterprises are granting their agents and the controls in place to contain them. More than half of organizations (54%) have already experienced a confirmed agent security incident (18%) or a near-miss caught before harm (36%). The structural weakness beneath those numbers is identity: only about a third (32%) give every agent its own scoped, managed identity, while the rest report that some agents share credentials or that agents mostly run on shared API keys and human or service-account credentials. When agents share credentials, a single compromised or over-permissioned agent carries a wide blast radius — and only three in ten enterprises (30%) isolate their highest-risk agents in sandboxes to bound that radius. What makes the gap notable is how comfortable enterprises are inside it. The security stack is overwhelmingly provider-native — OpenAI’s guardrails (51%), Google’s and Microsoft’s cloud controls, and Anthropic’s managed-agent controls dominate, while the dedicated agent-security specialists barely register — and satisfaction with that borrowed stack is high, averaging 4.2 out of 5. Yet spending remains a thin slice of the security budget, only a third of enterprises believe their AI defenses are ahead of AI-enabled attackers, and a clear majority plan to change tooling within the year. Enterprises are satisfied with controls they are simultaneously preparing to replace. Methodology VentureBeat fielded this survey as part of its ongoing Pulse Research series, this instrument focused on enterprise agent security — the tooling, identity, isolation, and enforcement controls organizations use to secure autonomous AI agents. Responses are filtered to organizations with more than 100 employees (n=107; the survey’s smallest size band, 1–100 employees, is excluded), drawn from a single June 2026 wave. Because this is one wave rather than a pooled multi-month sample, the report reads cross-sectionally and does not infer month-over-month trends. Several questions were multiple-select, so those shares can sum to more than 100%. By role the sample is senior and buyer-credible: 45% are final decision-makers for AI purchases and another 30% recommenders or influencers. Managers (43%), individual contributors (24%), VPs and directors (15%), and the C-suite (11%) make up the seniority mix. By organization size the sample is mid-market-weighted: 251–1,000 (42%) and 101–250 (25%) employees lead, with 1,001–5,000 (19%), 5,001–10,000 (8%), and 10,001+ (7%) above them. Technology/Software is the largest industry at 23%, followed by Manufacturing (15%), Retail/E-commerce (14%), and Healthcare/Life Sciences (13%). At 107 respondents the sample is large enough to read directionally but should be treated as a directional signal rather than a precise measurement; it is self-selected and is not a probability sample. It skews toward the mid-market, so it is best read as the view from organizations actively standing up agent security rather than from the largest operators. Satisfaction ratings are computed on the respondents who answered each rating question; the overall satisfaction score reflects 82 of the 107 qualified respondents. Finding 1: The incidents are already here More than half have had an agent security incident or near-miss We asked whether organizations had experienced an agent security incident — a confirmed breach, or a near-miss caught before harm. Most that run agents in production had. This is the report’s defining number. More than half of organizations (54%) have already had an agent security event — 18% a confirmed incident and 36% a near-miss caught before it caused harm. Only 42% report nothing, and a small remainder either run no agents in production or don’t track such events. That so many report near-misses rather than only confirmed incidents is telling: enterprises are catching problems, but they are catching them close to the edge. The controls examined in the rest of this report — identity, isolation, enforcement — are what determine whether the next near-miss stays a near-miss. Exposure scales with company size, but containment does not. The incident-or-near-miss rate rises from 49% in the mid-market (companies with 101-1,000 employees) to 63% at larger enterprises (above 1,000 employees), while sandbox isolation of high-risk agents falls from 35% to 20%, and satisfaction with security tooling drops from 4.36 to 3.97. The organizations running the most agents across the most systems carry the most incidents and the least of the one control that bounds an incident's blast radius. Finding 2: The identity gap Only a third give every agent its own scoped identity We asked how enterprises manage the identity of their AI agents — whether each agent has its own credentials, or agents share them. Full per-agent identity is the exception. Rolled together, the overlapping answers show 69% of enterprises (74 of 107) with credential sharing somewhere in the agent fleet. Identity is the structural weakness beneath the incidents. Only about a third of enterprises (32%) give every agent its own scoped, managed identity — the precondition for least-privilege access and clean attribution. Nearly half (48%) say some agents have scoped identities but many still share credentials, and another 32% say agents mostly run on shared API keys or borrowed human and service-account credentials. (Respondents could describe more than one pattern across their agent fleet, so these overlap.) The consequence is direct: when agents share credentials, an over-permissioned or compromised agent can act with far more reach than intended, and forensics after an incident cannot cleanly tell which agent did what. The non-human identity problem — giving every agent its own governed identity — is the single largest unfinished piece of enterprise agent security. Moreover, a company’s agent credential posture is correlated with incidents. Organizations with credential sharing anywhere in the fleet were hit — with an incident or a near-miss in the past twelve months — at 63.5% (47 of 74). Organizations where every agent carries its own scoped identity were hit at 40.9% (9 of 22). The fully-scoped group is small, so for now the relationship is an association rather than proven causation, and the gap is concentrated in the mid-market — but within a single survey, a twenty-three point difference in incident rate suggests significance. Finding 3: Observe and enforce, but rarely isolate Only three in 10 sandbox their highest-risk agents We asked what an organization’s agent security posture looks like in practice — whether they observe, enforce, isolate, or some combination. The control that bounds damage is the least common. Monitoring and enforcement are reasonably common; containment is not. Roughly half of enterprises observe agent activity (47%) or enforce scoped permissions at runtime (49%), but only 30% isolate their highest-risk agents in sandboxes that bound the blast radius when the other controls fail. That ordering is backwards from a defense-in-depth standpoint: observation tells you what happened, enforcement tries to prevent it, but isolation is what limits the damage when prevention fails — and it is the control enterprises have adopted least. Combined with the identity gap in Finding 2, the picture is of agents that are watched and permissioned but rarely boxed in, which is precisely the configuration in which a single failure propagates. Finding 4: Security runs on borrowed, provider-native controls Guardrails from OpenAI, Google and Microsoft dominate; specialists barely register We asked which agent security tooling enterprises use, and which is their primary layer. The answer favors the model providers and hyperscalers over the dedicated security vendors. Enterprises are securing agents with tools that came bundled with their models and clouds. OpenAI’s guardrails lead at 51%, followed by Google’s and Microsoft’s cloud-native controls and Anthropic’s managed-agent controls — and when asked to name their single primary security layer, 82% name one of these provider-native offerings. The purpose-built agent-security category — Palo Alto’s Prisma AIRS, CrowdStrike, Cisco AI Defense, Zenity, HiddenLayer, Check Point’s Lakera, Okta for AI Agents, non-human identity platforms — barely registers, each in the low single digits, and only 5% run no dedicated tooling at all. As with retrieval and evaluation elsewhere in this series, the provider bundle is winning the default: enterprises reach first for the guardrails their platform ships, and the independent security layer that would address the identity and isolation gaps has not yet been adopted at scale. The provider-default pattern is consistent across both Q2 survey waves. In April–May (n=110), usage was led by the same names — OpenAI's controls at 26%, Azure at 15%, AWS at 14%, Google at 12% — with every dedicated agent-security specialist at 3% or below and one in ten using no dedicated tooling at all. The common finding from the two surveys: Enterprises are defaulting to the solutions provided by the platform they’re using, and the specialist category vendors have yet to become big players here. (A note on reading these shares. As described in the methodology section, the respondent sample is self-selected and skews mid-market, and the usage question counted every vendor or approach a respondent has in place — so the figures measure presence in the security stack rather than spending or exclusivity. Individual vendor percentages therefore carry all the usual sample caveats. The structural pattern, however, held across both Q2 waves on two differently worded questions: provider-native and hyperscaler controls lead, and dedicated agent-security specialists remain in low single digits. Read the individual shares loosely and the pattern with confidence.) Finding 5: And enterprises are comfortable with it Satisfaction is high, even as incidents mount and identity lags We asked how satisfied enterprises are with their current agent security tooling. The comfort is notably out of step with the exposure documented above. Satisfaction with agent security tooling is high — 4.2 out of 5 overall, and 4.1 for value for money — among the most positive readings in this series. That is the striking part: enterprises are highly satisfied with a stack that is mostly borrowed provider guardrails, even though more than half have already had an incident or near-miss and only a third give their agents scoped identities. The comfort appears to rest on the convenience and low friction of provider-native controls rather than on demonstrated containment. It is a false comfort in the making — the same enterprises expressing satisfaction are, as Finding 8 shows, a clear majority planning to change tooling within the year, which suggests the confidence is thinner than the score implies. Finding 6: Budgets haven’t caught up Most spend under a tenth of the security budget on agents We asked what share of the security budget enterprises allocate to securing AI agents. For a fast-emerging risk, the allocation is modest. Spending on agent security is still a thin slice. The most common allocation is 6–10% of the security budget (46%), and a third of enterprises (34%) spend 5% or less; only a quarter (24%) devote more than a tenth. Given the incident rate in Finding 1 and the identity and isolation gaps in Findings 2 and 3, the budget looks like a lagging indicator — the risk has arrived faster than the funding to address it. The enterprises spending more than a tenth of their security budget on agents are a distinct minority, and they are likely the ones building the scoped-identity and isolation controls the rest have not. Finding 7: The arms race is even, at best Only a third think their AI defenses are ahead of AI-enabled attackers We asked how enterprises assess the balance between their AI-enabled defenses and AI-enabled attackers. Confidence is far from settled. Enterprises are split on whether they are winning. Only about a third (35%) believe their AI-enabled defenses are ahead of AI-enabled attackers; the rest are less sure — 32% call it roughly even, 21% think attackers are ahead, and another 21% say it is too early to tell. Taken together, a clear majority (53%) rate the balance as even or tilted toward the attacker. That uncertainty sits uneasily beside the high satisfaction of Finding 5: enterprises are content with their tooling yet unconvinced it is winning the contest it exists to win. In a domain where the offense is also compounding with AI, an even race is not a comfortable place to be. Finding 8: A security reshuffle is coming Nearly six in 10 plan to adopt or switch tooling within a year We asked whether enterprises plan to adopt a new, additional, or replacement agent security solution, and which they are considering. Few intend to stand pat. The security stack is not settled. While 41% have no plans to change, a clear majority (59%) intend to adopt a new, additional, or replacement agent security solution within twelve months, and 29% within the next quarter — a strong signal that, high satisfaction notwithstanding, enterprises know the current stack is provisional. Incidents are what start the buying cycle. Among organizations that have been hit, 42.1% plan to adopt, add, or replace agent security tooling within the next ninety days, against 14.0% of organizations with no incident — and after a confirmed incident it becomes majority behavior, at 52.6%. Getting hit also changes the threat assessment: 33.3% of hit organizations say AI-armed attackers are ahead of their defenses, against 8.0% of the unhit. Experience, in this data, is the strongest predictor of both urgency and pessimism. The consideration set still leans provider-native (OpenAI 34%, Google 30%, Anthropic 29%, Azure 25%), but the dedicated security vendors — Cloudflare, Cisco, Palo Alto, Okta, Check Point’s Lakera — draw early interest in the mid-to-high single digits, more than their current footprint. What the shopping does not yet include is the identity layer specifically. Twelve percent of the respondents include an agent-identity product — Okta for AI Agents, Microsoft Entra Agent ID, or a non-human identity platform — anywhere in their consideration set, and among the credential-sharing organizations that have already had an incident, identity consideration is essentially unchanged, at roughly one in ten. The control most directly implicated by the incident data is the one largely missing from the purchase plans. Whether this wave hardens the provider-native default or finally opens the door to purpose-built agent security — the identity and isolation controls the incidents call for — is the question this series will keep tracking. The bottom line: A security gap that autonomy will test first Organizations with more than 100 employees are giving AI agents real reach into systems and data while securing them with controls built for something else. More than half have already had an incident or near-miss; only a third give every agent its own scoped identity, and most still share credentials; only three in ten isolate their highest-risk agents; and the stack doing this work is overwhelmingly borrowed from the model providers and hyperscalers rather than purpose-built for agents. The uncomfortable pairing is confidence with exposure: satisfaction with the current tooling is among the highest in this series, yet spending is a thin slice of the security budget, only a third believe their defenses are ahead of AI-enabled attackers, and a clear majority are already planning to replace what they have. At 107 respondents in a single wave this is a directional read, skewed toward the mid-market — but the direction is clear: agent adoption is running ahead of agent security, and the controls that matter most when something fails — scoped identity and isolation — are the ones enterprises have built least. The agent security gap is not a coverage problem that a provider guardrail will close on its own; it is a problem of identity, isolation, and enforcement built for autonomous software. The open question for later waves is whether enterprises close it deliberately — or whether a confirmed incident closes it for them. Based on survey responses from 107 qualified enterprise respondents (100+ employees), drawn from a single June 2026 wave. This is a directional read, not a precise measurement — the sample is self-selected and skews mid-market, so it's best read as the view from organizations actively standing up agent security rather than from the largest operators. Respondents are senior and buyer-credible (45% final decision-makers, 30% recommenders/influencers), spanning managers through the C-suite, and drawn primarily from Technology/Software, Manufacturing, Retail/E-commerce, and Healthcare/Life Sciences.

15 hours agoReader view

The AI compute gap: Enterprises are buying infrastructure faster than they can measure what it costs

Across 107 enterprises, AI infrastructure spending is accelerating well ahead of the ability to see or steer its economics. Most organizations run their AI on a familiar base of hyperscalers and model-provider APIs, yet the next dollar is aimed at specialized compute almost none of them use today; a majority intend to switch or add providers within the year, many within a quarter. Buying decisions turn on integration and total cost of ownership rather than headline token price — which is fortunate, because most enterprises cannot yet see their unit economics clearly: GPUs sit at half utilization or less, and fewer than half rigorously track what their compute actually costs. The result is a compute gap — heavy, fast-moving investment running ahead of the visibility needed to control it. This wave of VentureBeat Pulse Research examines enterprise AI infrastructure and compute: where organizations are in their deployment journey, what they run AI on today, how satisfied they are, what would make them switch, where they plan to evaluate their investments, and — most revealingly — how well they can measure and control the economics of the compute underneath it all. The central finding is a compute gap — the distance between how aggressively enterprises are investing in AI infrastructure and how little of its economics they can see. Only about one in five (21%) run AI in production at scale, yet spending intentions are outrunning that maturity: the single largest planned area enterprises plan to evaluate over the next year is AI-specialized clouds (45%), a layer almost none of these enterprises use today. Meanwhile the compute already in place runs cold — 83% report GPU utilization of 50% or less — and fewer than half (44%) can rigorously track what their AI compute costs. Enterprises are buying more infrastructure faster than they can account for what they already own. Enterprises are not settled on their infrastructure vendors, either: A clear majority (64%) plan to switch or add an infrastructure provider within twelve months, and 38% within the next quarter — unusually high churn intent for a category this foundational. When they choose, they choose on integration with the existing stack (41%) and total cost of ownership (35%), not on headline price: cost per million tokens is the deciding factor for just 8%. And the frontier constraint that will shape the next round of decisions — the shift from GPU compute to memory bandwidth as inference scales — is barely on the radar, with roughly one in five enterprises either unaware of it or yet to address it. Methodology VentureBeat fielded this survey as part of its ongoing Pulse Research series, this survey focused on enterprise AI infrastructure, compute, and inference economics. Responses are filtered to organizations with more than 100 employees (n=107; the survey’s smallest size band, 1–100 employees, is excluded), drawn from a single Q2 2026 (June) wave. Because this is one wave rather than a pooled multi-month sample, the report reads cross-sectionally and does not infer month-over-month trends. Several questions were multiple-select, so those shares can sum to more than 100%. By organization size the sample concentrates in the mid-market: 101–250 employees (36%) and 251–1,000 (27%) lead, with 1,001–5,000 (22%), 5,001–10,000 (8%), and 10,001+ (7%) above them. By role it spans managers (38%), individual contributors (28%), VPs and directors (19%), and the C-suite (13%); on purchasing authority it is buyer-credible, with 45% final decision-makers and another 30% recommenders or influencers for AI solutions. Technology/Software is the largest industry at 26%, followed by Healthcare/Life Sciences (15%), Financial Services (13%), and Retail/E-commerce (12%). At 107 respondents the sample is large enough to read directionally but should be treated as a directional signal rather than a precise measurement; it is self-selected and is not a probability sample. It also skews toward the mid-market and toward earlier-stage adopters, so it is best read as the view from organizations actively building out AI infrastructure rather than from the largest hyperscale operators. Finding 1: Ambition outpaces production Only one in five run AI in production at scale We asked where organizations sit in their AI deployment journey. Most are still building toward production rather than operating at scale. The maturity curve is front-loaded. Three-quarters of enterprises (76%) are either experimenting or running only some workloads in production, and just 21% describe AI in production at scale. This matters for everything that follows: the infrastructure decisions in this report are being made largely by organizations still early in deployment, whose compute footprint — and whose costs — are about to grow. The evaluation and switching intentions in Findings 3 and 4 are the leading edge of that build-out, not the settled preferences of operators who have already found what works. Finding 2: Enterprises run on hyperscalers and model APIs The specialized GPU clouds barely register — today We asked which providers and platforms enterprises currently use to run their AI. The answer is a familiar one: the incumbents. The current stack is hyperscaler-and-API. Google Cloud leads at 48%, and the general-purpose clouds (Google, Microsoft, AWS, Oracle) together with the major model APIs (Gemini, OpenAI, Anthropic) account for essentially all current deployment. The specialized “neocloud” GPU providers that dominate AI-infrastructure headlines — CoreWeave, Lambda, Crusoe, Nebius and peers — register at or near zero among these enterprises today. Only 6% run their own on-prem GPU clusters and 4% a custom open-source stack. Enterprises are, for now, running AI on the providers they already buy from — which makes the evaluation intentions in Finding 3 all the more striking. (A note on reading these shares. As described in the methodology section, this sample is self-selected and skews mid-market, and this question counted every provider a respondent uses — an average of 2.1 selections each — so the figures measure presence in the stack rather than spending or primary status. A sample built this way will show a different provider mix than a spend-weighted census of the broader market; Google's strength here, for example, is consistent with its long-standing position among smaller enterprises building on AI. Read these shares as a portrait of what this AI-active cohort runs today, and treat gaps between these figures and industry-wide market share estimates as a property of the sample rather than a contradiction of either.) Finding 3: The next dollar goes to infrastructure they don’t yet run AI-specialized clouds top the evaluations list We asked where enterprises planned to evaluate AI infrastructure over the next 12 months. Their answers point away from the stack they run today. Here is the report’s sharpest tension. The single most-cited planned evaluation area — AI-specialized clouds, at 45% — is the very category almost none of these enterprises use today (Finding 2). Nearly a third (32%) intend to evaluate non-Nvidia accelerators, and 28% in next-generation Nvidia silicon; even decentralized compute networks (16%) and sovereign compute (11%) draw meaningful interest. Read against current usage, this is not incremental — it is the leading edge of a re-platforming. The direction-of-travel question tells the same story: every infrastructure approach is net-expanding, but specialized AI clouds carry the highest net momentum (+24), edging out even the hyperscalers (+22). Enterprises are preparing to move a meaningful share of AI compute off the general-purpose cloud. This continues a trend we saw in our April-May survey wave. Back then, usage of the AI-specialized clouds was equally marginal — CoreWeave at 3%, Lambda at 4%, Crusoe at 2% of enterprises. When we asked enterprises what change they planned in their AI infrastructure strategy over the next twelve months, the most-cited answer was moving workloads to specialized AI clouds, at 33%. Asked in April-May which emerging compute option they were most likely to evaluate AI-specialized clouds again drew the most responses. Two waves, two differently worded questions, one consistent picture: the type of cloud enterprises are most eager to assess is the type they have barely begun to use. Finding 4: A switching wave is building Six in 10 plan to change providers within a year — many within a quarter We asked whether and when enterprises plan to switch or add an infrastructure provider. Very few intend to stand still. For a category as foundational as compute, this is a remarkable amount of intended movement. Only 36% have no plans to change, meaning a clear majority (64%) intend to switch or add a provider within twelve months — and 38% within the next quarter alone. Where that interest points is telling: the providers drawing the most switching consideration are again the incumbents — Microsoft Azure and Google Cloud (33% each), OpenAI (30%), and Gemini (22%) — which suggests much of the near-term movement is reshuffling among the majors and consolidating spend rather than defecting to new entrants. The neocloud interest in Finding 3 is a 12-month evaluation thesis; the switching in the next quarter is mostly incumbents trading share. (Method note: Respondents who selected both "no plans to change" and a specific switching window are counted as switchers, on the logic that naming a timeframe is the more specific answer; three respondents were reclassified under this rule.) Finding 5: Nobody buys on token price Integration and total cost of ownership decide — not sticker price We asked what matters most when enterprises select an AI infrastructure provider. Headline price finished last. Enterprises do not buy AI infrastructure on pricing, which is the place vendors compete on hardest. Integration with the existing stack (41%) and total cost of ownership (35%) dominate, while the headline metric — cost per million tokens — is the deciding factor for just 8%, dead last. The pattern is coherent: buyers are optimizing for how a provider fits and what it truly costs to operate, not for the advertised unit rate. It also foreshadows Finding 7 — enterprises say TCO matters most, yet most cannot yet measure it rigorously. The stated priority and the measured capability are out of step. Finding 6: Expensive GPUs, idle most of the time 83% report GPU utilization of 50% or less We asked what share of their GPU capacity enterprises actually utilize. The answer is a well-known but rarely quantified inefficiency. Disclosure: Band percentages count every selection against all 107 qualified respondents; 14 respondents selected more than one band, so bands overlap. At the respondent level, 83 of the 100 GPU-operating enterprises reported utilization at or below 50% The compute already in place runs cold. Adding the bands at or below half capacity, 83% of enterprises that operate GPUs report utilization of 50% or less, and nearly half (49%) run at 25% or below. Only 12% clear the 50% mark, and a further 8% do not measure utilization at all. Idle accelerators are expensive accelerators, and this is the clearest single measure of the compute gap: enterprises are planning to buy more GPUs and specialized compute (Finding 3) while the capacity they already own sits substantially unused. The efficiency headroom in the current fleet is large — and largely unmeasured. Finding 7: Spending fast, measuring slowly Fewer than half rigorously track what their compute costs We asked whether enterprises can quantify the cost and return of their AI infrastructure spend, and how satisfied they are with what they run. Confidence in the ledger lags the spending. Measurement trails money. Fewer than half of enterprises (44%) rigorously track the cost and return of their AI compute; the majority track only partially (39%), cannot quantify it yet (20%), or have not prioritized it (6%). That gap is consequential given Finding 5, where total cost of ownership was the second-ranked buying criterion — enterprises are choosing providers on an economic basis they mostly cannot yet measure. Satisfaction with current infrastructure is moderately positive but not enthusiastic: on a five-point scale, overall satisfaction averages 4.0, with ease of implementation (3.8) and value for money (3.9) trailing slightly — the softness landing, tellingly, on cost. Enterprises are spending quickly and accounting slowly. Finding 8: The next bottleneck few are watching As inference shifts from compute to memory, the field scatters Finally, we asked how enterprises would address the emerging constraint in large-scale inference — the shift from GPU compute to memory, specifically KV-cache capacity. The responses reveal a frontier that is not yet a priority. The memory frontier is real but barely governed. Asked which approach they would rely on as the binding constraint in inference shifts from compute to memory bandwidth, enterprises scatter: Dell leads at 31%, Nvidia follows at 16%, and the rest fragments across storage vendors, open-source tooling, and model-level efficiency techniques. Most telling is that roughly one in five (18%) either do not recognize the constraint or have not begun to address it. For a shift that will reshape inference cost and architecture, this is an early and unsettled market — and, consistent with the measurement gap in Finding 7, one where many enterprises simply do not yet have a view. It is the next chapter of the compute gap, arriving before most have closed the current one. The bottom line: A compute gap that faster spending will widen, not close Organizations with more than 100 employees are investing in AI infrastructure faster than they can measure it. Most are still early in deployment, yet their spending intentions point past their current stack — toward specialized clouds and alternative accelerators almost none of them run today — and a clear majority intend to change providers within the year. They buy on integration and total cost of ownership rather than headline price, which is rational; the difficulty is that most cannot yet see those economics clearly. The visibility gap is concrete. The GPUs enterprises already own run at half utilization or less for the overwhelming majority, and fewer than half can rigorously track what their compute costs or returns. Satisfaction is decent but unenthusiastic, softest on value for money — the dimension hardest to judge without measurement. And the next constraint, the shift from compute to memory in large-scale inference, is arriving while most enterprises are still unaware of it. At 107 respondents in a single Q2 wave this is a directional read, skewed toward the mid-market and earlier-stage adopters — but the direction is consistent: the appetite to spend is running well ahead of the instrumentation to spend well. The compute gap is not a capacity problem that more hardware will solve on its own; it is, first, a problem of seeing what the hardware already costs. The open question for later waves is whether enterprises build that visibility before the re-platforming arrives — or buy the next layer of infrastructure as blind to its economics as the last. Based on survey responses from 107 qualified enterprise respondents (100+ employees), drawn from a single Q2 2026 (June) wave. Because this is one wave rather than a pooled multi-month sample, the results read cross-sectionally rather than as a month-over-month trend, and at 107 respondents this is a directional signal rather than a precise measurement — the sample is self-selected, skews mid-market, and leans toward earlier-stage adopters rather than the largest hyperscale operators. Respondents include managers, individual contributors, VPs/directors, and the C-suite, with buyer-credible purchasing authority, across Technology/Software, Healthcare/Life Sciences, Financial Services, Retail/E-commerce, and other industries.

Railway secures $100 million to challenge AWS with AI-native cloud infrastructure

Railway, a San Francisco-based cloud platform that has quietly amassed two million developers without spending a dollar on marketing, announced Thursday that it raised $100 million in a Series B funding round, as surging demand for artificial intelligence applications exposes the limitations of legacy cloud infrastructure. TQ Ventures led the round, with participation from FPV Ventures, Redpoint, and Unusual Ventures. The investment values Railway as one of the most significant infrastructure startups to emerge during the AI boom, capitalizing on developer frustration with the complexity and cost of traditional platforms like Amazon Web Services and Google Cloud. "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?" said Jake Cooper, Railway's 28-year-old founder and chief executive, in an exclusive interview with VentureBeat. "The last generation of cloud primitives were slow and outdated, and now with AI moving everything faster, teams simply can't keep up." The funding is a dramatic acceleration for a company that has charted an unconventional path through the cloud computing industry. Railway raised just $24 million in total before this round, including a $20 million Series A from Redpoint in 2022. The company now processes more than 10 million deployments monthly and handles over one trillion requests through its edge network — metrics that rival far larger and better-funded competitors. Why three-minute deploy times have become unacceptable in the age of AI coding assistants Railway's pitch rests on a simple observation: the tools developers use to deploy and manage software were designed for a slower era. A standard build-and-deploy cycle using Terraform, the industry-standard infrastructure tool, takes two to three minutes. That delay, once tolerable, has become a critical bottleneck as AI coding assistants like Claude, ChatGPT, and Cursor can generate working code in seconds. "When godly intelligence is on tap and can solve any problem in three seconds, those amalgamations of systems become bottlenecks," Cooper told VentureBeat. "What was really cool for humans to deploy in 10 seconds or less is now table stakes for agents." The company claims its platform delivers deployments in under one second — fast enough to keep pace with AI-generated code. Customers report a tenfold increase in developer velocity and up to 65 percent cost savings compared to traditional cloud providers. These numbers come directly from enterprise clients, not internal benchmarks. Daniel Lobaton, chief technology officer at G2X, a platform serving 100,000 federal contractors, measured deployment speed improvements of seven times faster and an 87 percent cost reduction after migrating to Railway. His infrastructure bill dropped from $15,000 per month to approximately $1,000. "The work that used to take me a week on our previous infrastructure, I can do in Railway in like a day," Lobaton said. "If I want to spin up a new service and test different architectures, it would take so long on our old setup. In Railway I can launch six services in two minutes." Inside the controversial decision to abandon Google Cloud and build data centers from scratch What distinguishes Railway from competitors like Render and Fly.io is the depth of its vertical integration. In 2024, the company made the unusual decision to abandon Google Cloud entirely and build its own data centers, a move that echoes the famous Alan Kay maxim: "People who are really serious about software should make their own hardware." "We wanted to design hardware in a way where we could build a differentiated experience," Cooper said. "Having full control over the network, compute, and storage layers lets us do really fast build and deploy loops, the kind that allows us to move at 'agentic speed' while staying 100 percent the smoothest ride in town." The approach paid dividends during recent widespread outages that affected major cloud providers — Railway remained online throughout. This soup-to-nuts control enables pricing that undercuts the hyperscalers by roughly 50 percent and newer cloud startups by three to four times. Railway charges by the second for actual compute usage: $0.00000386 per gigabyte-second of memory, $0.00000772 per vCPU-second, and $0.00000006 per gigabyte-second of storage. There are no charges for idle virtual machines — a stark contrast to the traditional cloud model where customers pay for provisioned capacity whether they use it or not. "The conventional wisdom is that the big guys have economies of scale to offer better pricing," Cooper noted. "But when they're charging for VMs that usually sit idle in the cloud, and we've purpose-built everything to fit much more density on these machines, you have a big opportunity." How 30 employees built a platform generating tens of millions in annual revenue Railway has achieved its scale with a team of just 30 employees generating tens of millions in annual revenue — a ratio of revenue per employee that would be exceptional even for established software companies. The company grew revenue 3.5 times last year and continues to expand at 15 percent month-over-month. Cooper emphasized that the fundraise was strategic rather than necessary. "We're default alive; there's no reason for us to raise money," he said. "We raised because we see a massive opportunity to accelerate, not because we needed to survive." The company hired its first salesperson only last year and employs just two solutions engineers. Nearly all of Railway's two million users discovered the platform through word of mouth — developers telling other developers about a tool that actually works. "We basically did the standard engineering thing: if you build it, they will come," Cooper recalled. "And to some degree, they came." From side projects to Fortune 500 deployments: Railway's unlikely corporate expansion Despite its grassroots developer community, Railway has made significant inroads into large organizations. The company claims that 31 percent of Fortune 500 companies now use its platform, though deployments range from company-wide infrastructure to individual team projects. Notable customers include Bilt, the loyalty program company; Intuit's GoCo subsidiary; TripAdvisor's Cruise Critic; and MGM Resorts. Kernel, a Y Combinator-backed startup providing AI infrastructure to over 1,000 companies, runs its entire customer-facing system on Railway for $444 per month. "At my previous company Clever, which sold for $500 million, I had six full-time engineers just managing AWS," said Rafael Garcia, Kernel's chief technology officer. "Now I have six engineers total, and they all focus on product. Railway is exactly the tool I wish I had in 2012." For enterprise customers, Railway offers security certifications including SOC 2 Type 2 compliance and HIPAA readiness, with business associate agreements available upon request. The platform provides single sign-on authentication, comprehensive audit logs, and the option to deploy within a customer's existing cloud environment through a "bring your own cloud" configuration. Enterprise pricing starts at custom levels, with specific add-ons for extended log retention ($200 monthly), HIPAA BAAs ($1,000), enterprise support with SLOs ($2,000), and dedicated virtual machines ($10,000). The startup's bold strategy to take on Amazon, Google, and a new generation of cloud rivals Railway enters a crowded market that includes not only the hyperscale cloud providers—Amazon Web Services, Microsoft Azure, and Google Cloud Platform—but also a growing cohort of developer-focused platforms like Vercel, Render, Fly.io, and Heroku. Cooper argues that Railway's competitors fall into two camps, neither of which has fully committed to the new infrastructure model that AI demands. "The hyperscalers have two competing systems, and they haven't gone all-in on the new model because their legacy revenue stream is still printing money," he observed. "They have this mammoth pool of cash coming from people who provision a VM, use maybe 10 percent of it, and still pay for the whole thing. To what end are they actually interested in going all the way in on a new experience if they don't really need to?" Against startup competitors, Railway differentiates by covering the full infrastructure stack. "We're not just containers; we've got VM primitives, stateful storage, virtual private networking, automated load balancing," Cooper said. "And we wrap all of this in an absurdly easy-to-use UI, with agentic primitives so agents can move 1,000 times faster." The platform supports databases including PostgreSQL, MySQL, MongoDB, and Redis; provides up to 256 terabytes of persistent storage with over 100,000 input/output operations per second; and enables deployment to four global regions spanning the United States, Europe, and Southeast Asia. Enterprise customers can scale to 112 vCPUs and 2 terabytes of RAM per service. Why investors are betting that AI will create a thousand times more software than exists today Railway's fundraise reflects broader investor enthusiasm for companies positioned to benefit from the AI coding revolution. As tools like GitHub Copilot, Cursor, and Claude become standard fixtures in developer workflows, the volume of code being written — and the infrastructure needed to run it — is expanding dramatically. "The amount of software that's going to come online over the next five years is unfathomable compared to what existed before — we're talking a thousand times more software," Cooper predicted. "All of that has to run somewhere." The company has already integrated directly with AI systems, building what Cooper calls "loops where Claude can hook in, call deployments, and analyze infrastructure automatically." Railway released a Model Context Protocol server in August 2025 that allows AI coding agents to deploy applications and manage infrastructure directly from code editors. "The notion of a developer is melting before our eyes," Cooper said. "You don't have to be an engineer to engineer things anymore — you just need critical thinking and the ability to analyze things in a systems capacity." What Railway plans to do with $100 million and zero marketing experience Railway plans to use the new capital to expand its global data center footprint, grow its team beyond 30 employees, and build what Cooper described as a proper go-to-market operation for the first time in the company's five-year history. "One of my mentors said you raise money when you can change the trajectory of the business," Cooper explained. "We've built all the required substrate to scale indefinitely; what's been holding us back is simply talking about it. 2026 is the year we play on the world stage." The company's investor roster reads like a who's who of developer infrastructure. Angel investors include Tom Preston-Werner, co-founder of GitHub; Guillermo Rauch, chief executive of Vercel; Spencer Kimball, chief executive of Cockroach Labs; Olivier Pomel, chief executive of Datadog; and Jori Lallo, co-founder of Linear. The timing of Railway's expansion coincides with what many in Silicon Valley view as a fundamental shift in how software gets made. Coding assistants are no longer experimental curiosities — they have become essential tools that millions of developers rely on daily. Each line of AI-generated code needs somewhere to run, and the incumbents, by Cooper's telling, are too wedded to their existing business models to fully capitalize on the moment. Whether Railway can translate developer enthusiasm into sustained enterprise adoption remains an open question. The cloud infrastructure market is littered with promising startups that failed to break the grip of Amazon, Microsoft, and Google. But Cooper, who previously worked as a software engineer at Wolfram Alpha, Bloomberg, and Uber before founding Railway in 2020, seems unfazed by the scale of his ambition. "In five years, Railway [will be] the place where software gets created and evolved, period," he said. "Deploy instantly, scale infinitely, with zero friction. That's the prize worth playing for, and there's no bigger one on offer." For a company that built a $100 million business by doing the opposite of what conventional startup wisdom dictates — no marketing, no sales team, no venture hype—the real test begins now. Railway spent five years proving that developers would find a better mousetrap on their own. The next five will determine whether the rest of the world is ready to get on board.