Ollama Raises $65 Million Series B as 8.9 Million Developers Use Its AI Tool Monthly
Updated
Updated · TechCrunch · Jul 9
Ollama Raises $65 Million Series B as 8.9 Million Developers Use Its AI Tool Monthly
1 articles · Updated · TechCrunch · Jul 9
Summary
$65 million in Series B funding gives Ollama $88 million raised in total, with Theory Ventures leading the latest round after Benchmark backed its $15 million Series A.
8.9 million monthly developers now use Ollama, which says it is present in 85% of the Fortune 500 despite having only 14 employees.
The startup's appeal rests on making open-weight AI models easy to run locally or access in the cloud, echoing founders Jeff Morgan and Michael Chiang's earlier work on Docker Desktop.
Morgan said demand accelerated around January as larger open models became useful for agentic coding tasks, strengthening the case for cheaper open models alongside closed systems.
That shift also highlights a broader VC push into open-source AI companies, even as some users have criticized Ollama's cloud business for drifting from its free desktop roots.
Is Ollama's paid cloud service a necessary evolution or the first step in betraying its open-source community for profit?
With its cloud service facing a 95% failure window, can Ollama's new funding rebuild trust before enterprises abandon the platform?
Ollama Secures $65M Series B to Accelerate Local AI Model Deployment and Cloud Expansion in 2026
Overview
In 2026, Ollama secured $65 million in a pivotal Series B funding round, marking a major milestone for the company. This investment highlights Ollama's rapid market growth and validates its forward-thinking vision in the AI industry. The capital will drive immediate expansion and accelerate strategic initiatives, further establishing Ollama as a key player in making advanced AI models accessible to developers. With backing from leading venture capital firms and Y Combinator, Ollama is well-positioned to enhance its offerings and continue its mission of empowering programmers with powerful, easy-to-use AI tools.