Latent Space AI RunPod's AI Cloud Space
Jan 21, 2026
Discover the inspiring origin story of RunPod, which began with a basement GPU rig and transitioned from mining to AI servers. Learn how they achieved impressive growth, hitting $1 million in revenue within nine months without early VC funding. The discussion highlights their developer-focused platform and unique strategies for user acquisition, including utilizing Reddit. Explore the competitive landscape of AI cloud computing and RunPod's vision to empower the next wave of developers and operators in AI.
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Basement Mining Rig Turned ML Startup
- Jaeden Schafer recounts RunPod's founders converting a basement Ethereum mining rig into GPU servers for ML work.
- They bootstrapped from that hobby project into a product after noticing the GPU software stack was "just hot garbage."
Reddit Beta Users Built Initial Traction
- The founders used Reddit to find beta users by offering free access for feedback.
- Within nine months they hit $1 million in revenue and quit their jobs based on that traction.
Revenue-Share Expansion Over Debt
- RunPod avoided debt by partnering with data centers on revenue-share deals while scaling GPU capacity.
- That approach preserved control and let them expand until institutional investors arrived after ChatGPT-driven demand surged.