Cloudflare, Inc. (NET) Cloudflare’s AI Ambitions Are Gaining Traction
Cloudflare has made impressive strides in the AI space, positioning itself as a potential leader in cloud-based AI infrastructure. Traditionally known for its cybersecurity solutions, Cloudflare is now leveraging its global infrastructure to provide AI-powered solutions. The company’s Workers AI platform, introduced last year, enables developers to build and deploy AI applications using Cloudflare’s network without having to purchase costly hardware like GPUs.
The most compelling aspect of Cloudflare’s recent strategy is its deployment of Nvidia GPUs across 180 cities globally, with plans to expand further. This infrastructure gives organizations access to powerful AI tools without the associated capital expenditures. As the AI and cloud computing markets continue to grow, this positions Cloudflare to capture a significant portion of the $580 billion IaaS market by 2030.
Additionally, the company’s new AI Audit tool, aimed at content creators, could generate additional revenue streams by allowing websites to monetize how AI bots use their content. These initiatives add to Cloudflare’s already strong growth trajectory, with revenue up 30% year-over-year in its second-quarter results. With analysts projecting Cloudflare’s earnings to grow at an annual rate of 62% for the next five years, the stock looks like a promising opportunity for investors looking to capitalize on AI-driven growth.
