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DigitalOcean surpassed a $1 billion annualized revenue run rate in December 2025, driven by AI adoption and expansion among digital native enterprises. In Q4 2025, the company reported $242 million in revenue, an 18% increase, contributing to a total of $901 million for the year.

AI-related annual recurring revenue (ARR) reached $120 million, up 150% year-over-year. DigitalOcean will add 31 megawatts of new data center capacity in 2026, with expectations of revenue growth of 19% to 23%. The company also plans to sunset its dedicated bare-metal CPU offering, which will eliminate $13 million in non-core ARR by the end of 2026.