Rafay Expands Elevate AI Infrastructure Ecosystem Amid Shift to Token Factory Monetization

DigitalOcean Holdings secured a $725 million equipment finance facility on September 10 to fund the GPU and CPU capacity its AI-Native Cloud business needs, sending the stock up 7.45%. The facility, arranged with MUFG Bank as lead administrative and collateral agent alongside Axos Bank, BMO Bank and Wells Fargo as joint lead arrangers and PNC Bank as document agent, matures on September 10, 2030, and carries an accordion option for another $300 million. CFO Matt Steinfort described the financing as a way to align cash outflows with revenue at an attractive cost of capital, raised from a position of strength. The move follows second-quarter results reported on August 4, when DigitalOcean posted revenue growth of 29% year over year and raised its full-year outlook on accelerating AI demand. Remaining performance obligations reached $894 million in the second quarter, up twelvefold from a year earlier, while AI customer ARR grew 212% year over year and customers spending $500,000 or more grew their revenue contribution 160%. The expansion has come at a cost: operating income fell 18%, operating margin slipped to 10%, net income dropped 4% to $35 million, and adjusted free cash flow margin narrowed from 26% to 22%.