Ollama, a Canadian-founded AI infrastructure startup based in Palo Alto, has closed a $65 million USD Series B round to fuel its mission of bringing AI’s “personal computer moment” by allowing developers to run open-source large language models locally on their machines.
- Ollama enables local deployment of open-source AI models for developers
- Raised $65M Series B, pushing total funding to $88M USD
- Founded by Canadian tech entrepreneurs now based in Silicon Valley
What happened
Ollama, a startup co-founded by Canadian entrepreneurs Jeff Morgan and Michael Chiang, announced it has raised $65 million USD in a Series B funding round. The Palo Alto-based company offers an open-source platform that allows developers to download and run large language models locally on their personal computers. Since its launch in 2023, Ollama has grown rapidly, now boasting nearly nine million users worldwide and serving 85 percent of Fortune 500 companies.
The Series B round was led by US-based Theory Ventures with participation from existing investors including Benchmark, Y Combinator, Garage Capital from Kitchener-Waterloo, and Vancouver's GTMfund. This latest capital infusion brings Ollama’s total funding to $88 million USD. The company plans to invest in product development, expanding infrastructure, and hiring key talent to support its growth trajectory.
Why it matters
Ollama aims to spark what it calls the 'personal computer moment' for AI, paralleling how personal computing revolutionized technology by making it accessible and open to millions. By enabling developers to run AI models offline and locally, Ollama addresses concerns around data privacy, latency, and accessibility that come with cloud-based AI solutions.
The company’s founders have a proven track record, having previously created Kitematic, an open-source tool that simplified Docker usage, which later became Docker Desktop—used daily by over 10 million developers. Their experience and deep roots in both the Canadian and Silicon Valley tech ecosystems position Ollama as a significant player in democratizing AI technology across industries.
What to watch next
Key developments to monitor include Ollama’s product enhancements following this new funding, particularly how they improve ease of deployment and model performance for developers running AI locally. Additional computing infrastructure upgrades and talent acquisitions will be critical as the startup seeks to maintain its rapid user growth of 100,000 new users per week.
Furthermore, the company’s relocation from Toronto to Silicon Valley signals its strategic intent to engage more deeply with the epicenter of AI innovation. This move reflects a broader trend of Canadian tech founders migrating to the US for faster scale and investment opportunities, a dynamic that may influence future Canadian startup ecosystems and funding landscapes.