DigitalOcean is a cloud platform targeting AI-native and "Digital Native Enterprise" companies — growing technology businesses that build software products and run them in the cloud. DigitalOcean's core product is the Droplet, a virtual machine that lets developers spin up compute quickly. Around this, DigitalOcean has built a broad suite of infrastructure (IaaS), managed services (PaaS), and AI/ML capabilities under its Gradient AI Agentic Cloud brand. Gradient AI includes GPU infrastructure for running AI inference workloads, a managed layer for building and deploying AI agents, and pre-built AI agent products. DigitalOcean positions itself as simpler and more cost-transparent than the hyperscalers, targeting companies that find AWS, Azure, and Google Cloud too complex or expensive. DigitalOcean also operates Cloudways, a fully managed hosting product for agencies, freelancers, and eCommerce operators. DigitalOcean sells primarily through a self-service, consumption-based model — customers sign up, pay for what they use, and scale without a sales rep. A growing subset of larger customers are entering committed minimum-spend contracts. The cost structure is capital-intensive: DigitalOcean leases colocation data center space and fills it with its own servers. Gross margins run around 59-62%, with GPU infrastructure carrying lower margins than core cloud services. DigitalOcean is expanding data center capacity significantly in 2026 to support AI workload growth, which management expects to accelerate revenue growth.