CloudZero Paves The Way For Profitable AI Growth Through Cost Optimization

Granular cloud cost visibility ensures financial sustainability for AI-powered organizations

BOSTON, Jan. 30, 2025 /PRNewswire/ -- CloudZero, the global leader in cloud cost efficiency, is enabling organizations to gain unparalleled visibility into their AI spending, a critical need as AI adoption continues to expand. In the early stages of experimentation, businesses may write off AI costs as research and development, but as these initiatives mature, the costs tied to successful AI-driven products will significantly impact companies' cost of goods sold (COGS) and gross margins. As pressure rises for companies to justify AI-related spending, robust cloud cost visibility will be essential for informed decision-making.

CloudZero helps customers maximize the profitability of their AI investments by providing the visibility required to track, optimize, and control expenses related to AI. By connecting AI spending to business outcomes, organizations can measure their return on investment (ROI), scale operations efficiently, and maintain financial accountability throughout the entire AI development cycle. With clear insights into costs and returns, businesses can make informed decisions that drive efficiency and ensure their AI initiatives successfully reach the market with a sustainable, long-term impact.

How CloudZero Delivers AI Cost Visibility

• Understand AI Cost And Usage: CloudZero provides organizations with precise visibility into their generative AI costs. It supports data ingestion from all major cloud providers, including AWS, GCP, and Azure — as well as leading AI services like OpenAI, CoreWeave, and Anthropic. Additionally, CloudZero offers advanced features for tracking AWS AI spending, specifically for Bedrock and SageMaker.
• Granular Cost Allocation: AI projects often involve multiple teams and services, complicating cost allocation. CloudZero's cost allocation engine addresses this by attributing AI spending to specific teams, services, and workflows. This level of granularity helps organizations pinpoint where resources are being consumed and ensure accurate cost tracking.
• Business Impact Analysis: CloudZero links spending to business outcomes through unit economics, enabling organizations to calculate the ROI of every dollar spent on AI. By capturing key unit metrics — such as cost per prompt, inference, or token — teams are empowered to identify inefficiencies, optimize cloud spending, and align costs with strategic goals.

Driving Financial Sustainability In AI

"The dirty little secret about AI is that while its potential returns are vast, without the right management, many investments turn into expensive mistakes rather than profitable innovations," said Phil Pergola, CEO of CloudZero. "The CloudZero platform delivers the visibility and insights needed for companies to get the most out of their AI investments and to ensure a positive ROI. This is essential to unlocking its full potential."

By offering a clear view of AI-related expenses, CloudZero helps companies move beyond experimentation to sustainable growth. The platform empowers businesses to:

• Quantify the ROI of AI projects
• Reduce inefficiencies and optimize spending
• Innovate faster without compromising financial health

Optimize To Innovate

"CloudZero has been a game changer for us in managing the rapidly growing costs of our AI initiatives," said Pete Rubio, senior vice president of platform and engineering at Rapid7. "By providing deep visibility into our cloud spending and helping us optimize costs at a granular level, we can focus on scaling our AI solutions without worrying about runaway expenses. It's not just about saving money — it's about enabling innovation while maintaining financial accountability and control."

CloudZero's AI cost visibility capabilities establish a best practice framework for managing AI expenses. By helping companies refine their cost strategies, CloudZero ensures that AI-driven innovations remain both impactful and sustainable.

"Building scalable and cost-effective AI solutions is a top priority," said Philip Tsai, vice president of engineering at Helm.ai. "CloudZero has given us the visibility we need to understand our cloud spend, allowing us to make data-driven decisions about where to optimize and scale. For a lean, fast-growing team with a dynamic compute profile in the machine learning space, CloudZero not only allows us to analyze and track costs efficiently but also ensures that our innovations remain sustainable as we grow."

About CloudZero

CloudZero is the leader in proactive cloud cost efficiency. We enable engineers to build cost-efficient software without slowing down innovation. CloudZero's next-generation cloud cost optimization platform automates the collection, allocation, and analysis of cloud costs to uncover savings opportunities and improve unit economics. We are the only platform that enables companies to understand 100% of their operational cloud spend and take an engineering-led approach to optimizing that spend. CloudZero is used by industry leaders worldwide, such as Coinbase, Klaviyo, Miro, New Relic, Nubank, and Rapid7. Visit cloudzero.com to get started today.

SOURCE CloudZero