# hosted.ai cuts GPU idle time with virtualization

> hosted.ai virtualizes GPUs to boost utilization from 10% to 80% for service providers.
- Title: hosted.ai cuts GPU idle time with virtualization · Futuriom
- Summary: hosted.ai virtualizes GPUs to boost utilization from 10% to 80% for service providers. hosted.ai's software shares GPU capacity among tenants, reducing idle…
- Keywords: hosted.ai, gpu, neocloud, virtualization, gpu utilization, packet.ai, mesh, coldstart, fremont, california, 2024, 75 employees
- Source: Futuriom — https://futuriom.com/articles/news/startup-profile-hosted-ai-accelerates-gpu-utilization/2026/11
- Read time: 1 min
- Topics: hosted.ai, gpu, neocloud, virtualization, gpu utilization, packet.ai, mesh, coldstart, fremont, california, 2024, 75 employees
## gpu-as-service market problem
gpu-as-service cloud market evolves rapidly with many neoclouds inefficiently using their gpus.

> a customer who needs half a gpu now, three in a few hours and ten in the overnight batch has to buy ten gpus, because they must provision for the peak
## hosted.ai solves idle gpu problem
hosted.ai co-founder and ceo ditlev bredahl says customers buy too many gpus for peak usage, leaving 80-90% idle.

> the other 80 percent to 90 percent of what is deployed sits idle
## gpu virtualization solution
hosted.ai software virtualizes gpus so multiple tenants share capacity in oversubscribed way.
## why this model matters
a gpu never has more than one customer unlike cpus, ram, storage, and bandwidth in other infrastructure.
## vmware for generative ai
hosted.ai founders call their gpu virtualization approach vmware for generative ai.
## founders' tech background
ceo bredahl and coo james withall built uk2, a european web hosting platform similar to godaddy.
## onapp and previous ventures
bredahl and withall built onapp, a cloud management platform for cdns, telcos, and carriers to compete with aws.
## onapp results
onapp gained over 3000 service provider customers and was sold in 2021.
## gpu utilization improvements
a gpu billing 730 hours per month for single tenancy can bill 1825 hours per month on hosted.ai platform.
## revenue impact
utilization moves from 10-15% typical of inference to 80-90% range, achieving 2.5x sellable hours per gpu.
## mesh capacity sales
hosted.ai platform frees up 70% of existing gpu capacity for sale through the mesh.
## mesh revenue targets
hosted.ai expects $250m to $350m in mesh revenue this year with over $500m in pipeline.
## coldstart plan
coldstart helps neoclouds start up in locations with vacant land, power, and shell.
## coldstart process
hosted.ai finds anchor tenants, sources hardware with nvidia, and manages end customers for coldstart.
## future outlook
hosted.ai says demand for gpu virtualization has barely started with bright future ahead.
## Key takeaway

hosted.ai's software shares GPU capacity among tenants, reducing idle time from 80-90% to 10-15% for inference workloads.