Ollama, an open source AI developer tool, has secured $65 million in a Series B funding round led by Theory Ventures. The company, founded by Jeff Morgan, has grown to nearly 9 million users since its launch in 2023. This follows a $15 million Series A round led by Benchmark’s Peter Fenton, bringing the total raised to $88 million. The funding will support further development of the platform, which enables developers to run large AI models on their local machines.

Ollama was designed to simplify the deployment of open-weight AI models on personal computers. It allows developers to run models in minutes without requiring extensive cloud resources. The tool has been widely adopted by developers globally, with its integration into Docker Desktop enhancing its usability. The company’s approach has been praised for its efficiency and ease of use, making it a preferred choice for many in the AI development community.

The company’s growth has been rapid, with user numbers increasing significantly over the past year. In a recent statement, TechCrunch highlighted that the platform is used by over 10 million developers daily. This widespread adoption underscores the demand for tools that provide local AI model deployment capabilities. The funding will also be used to expand the platform’s features and improve its performance on various hardware configurations.

The expansion of Ollama raises questions about the long-term implications for cloud service providers and the broader AI development ecosystem. As more developers opt for local model deployment, there may be a shift in how companies allocate resources for AI infrastructure. This could lead to increased competition among cloud providers to offer more cost-effective solutions. Additionally, the rise of open source tools like Ollama may influence governance and standardization practices across the industry.

Despite its rapid growth, Ollama remains in the early stages of development. The company has not yet disclosed specific plans for monetization or enterprise adoption. However, the continued support from investors and the growing user base suggest a strong trajectory for the platform. As the AI development landscape evolves, Ollama’s role in enabling local model deployment is likely to become even more significant.