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Summary: AI cloud startup Runpod hits $120M in ARR — and it started with a Reddit post Crunch

- Runpod, an AI app hosting platform, achieved a $120 million annual revenue run rate after initially repurposing cryptocurrency mining rigs.
- The company gained traction by offering free access to their AI servers via Reddit, attracting beta testers and eventually leading to rapid growth and a $20 million seed round.
- Runpod focuses on a developer-centric approach, aiming to be the platform of choice for the next generation of AI software developers and now serves 500,000 developers globally.

A: Hey! Did you hear about this crazy startup story?

B: No, what happened? Tell me!

A: It's about a company called Runpod. They’re making a lot of money now – like, $120 million a year!

B: Wow! Really? What do they do?

A: They help people run AI apps. It’s a platform for it. Two friends, Zhen and Pardeep, started it.

B: Oh, interesting! How did they get started?

A: It’s a wild story! They originally tried mining Ethereum in their basements!

A: But that wasn’t very profitable and kind of boring, so they switched to using those computers for AI stuff.

B: Seriously? They just changed what they were doing?

A: Yeah! They found that the software for using the computers was really bad, so they built their own platform to fix it!

B: That’s clever! So, how did they get people to use it?

A: They just posted on Reddit! Can you believe it? They offered free access for feedback!

B: Reddit? That’s amazing! That's so resourceful!

A: It totally worked! They got users and started making money! Soon, they quit their jobs!

B: Incredible! But then what?

A: Then they realized they needed more powerful computers! They partnered with data centers.

B: That makes sense. But did they get any investment?

A: Not at first! Someone from Dell Technologies Capital saw their posts on Reddit and reached out!

B: Wow, Reddit again! They are getting famous!

A: Yeah, they also got an angel investor who’s a co-founder of Hugging Face. He was actually using their platform!

B: Amazing! So now they're huge?

A: Totally! They’ve got 500,000 developers using their service now. Big companies like Zillow are using it, too!

B: That’s really impressive! What are they planning for the future?

A: They're planning to raise more money and want to be the go-to platform for new programmers who are creating AI!

B: So cool! It sounds like they're on the right track.
Summary
Runpod, a startup initially repurposing crypto mining rigs, now boasts a $120M annual revenue. They gained traction via Reddit, offering free AI server access & attracting developers. Focused on a developer-centric approach, they now serve 500,000 globally.
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ID: 2d992fc6-8fbe-4e62-8eee-85f49b4f2b52

Category ID: listed_summary

URL: https://techcrunch.com/2026/01/16/ai-cloud-startup-runpod-hits-120m-in-arr-and-it-started-with-a-reddit-post/#summary

Date: Jan. 17, 2026

Notes: TechCrunch News Summary - 2026-01-17

Created: 2026/01/17 19:42

Updated: 2026/01/17 20:29

Last Read: 2026/01/17 20:29

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