Railway Raises $100 Million Series B As AI Pushes Today's Cloud Infrastructure Past Its Limits

SAN FRANCISCO, Jan. 22, 2026 /PRNewswire/ -- Today, Railway, a cloud platform that allows developers to ship faster and more efficiently, announced its $100 Million Series B round led by TQ Ventures, with participation from new and existing investors, FPV Ventures, Redpoint, and Unusual Ventures. The funding will fuel Railway's vision to make infrastructure invisible, so software works with developers, not against them. "As AI models get better at writing code, more and more people are asking the age-old question; where, and how, do I run my applications?" said Jake Cooper, founder and CEO of Railway. "The last generation of cloud primitives were slow and outdated, and now with AI moving everything faster, teams simply can't keep up. We built Railway to let developers focus on building and creativity, not configuration. We stripped everything down and rebuilt both the software and hardware to make the experience truly seamless, and the response from developers has exceeded anything I imagined." Despite rapid advancements of AI, developers still face a number of bottlenecks. Traditional software development relies on navigating a maze of tools that are deeply complex and massively cumbersome, especially to newer developers. Railway removes this friction and operational complexity by building its networking stack, compute, storage, orchestration software, and hardware from the ground up to deliver a fully hands-off hosting experience, underpinned by reliability and performance. This approach paid off recently when Railway remained online during widespread outages that affected major cloud providers. Railway customers report a 10x increase in developer velocity and up to 65% cost savings compared to traditional cloud platforms. By operating its own data centers with custom networking and orchestration, Railway charges only for actual usage, avoiding the markups common in legacy cloud infrastructure. With a marketplace of thousands of templates, Railway also allows teams to deploy virtually anything, from simple services to complex AI systems, without operational overhead. Combined with a zero-trust security model and 24/7 support, this focus on speed, simplicity, and efficiency has made Railway one of the fastest-growing cloud platforms, achieving 176x revenue growth and 15% month-over-month expansion. "At Bilt, we move fast. We need our tech stack to allow for that in a scalable, safe way," said Kartik Aggarwal, Tech Lead at Bilt. "What takes an hour on Railway could take 10x more on a traditional cloud platform. Railway is the fastest, giving us the most seamless, no config system." "Railway is building the infrastructure layer that will power the next era of software," said Schuster Tanger, Co-founding Partner of TQ Ventures. "Jake Cooper is an extraordinary talent under whose leadership Railway's Zero-Ops architecture has been purpose-built for an AI-native world and is dismantling the legacy systems that have slowed developers down over the past decade." With the new funding, Railway plans to make shipping software even faster and simpler by expanding its global data center footprint, growing its team, and building new tools designed for developers and AI systems. "It's always been our goal that everything should run on Railway," furthered Cooper. "We've spent the last five years building quietly, with zero marketing, and somehow millions of developers found us. This round lets us finally show the world our vision of how software should really be built, and we're excited to supercharge all this with TQ's unmatched enterprise customer introduction prowess."