Cloudflare Boosts AI Development with New Tools and Acquires Outerbase; Eyes $5B Revenue by 2028

April 7, 2025
Cloudflare Boosts AI Development with New Tools and Acquires Outerbase; Eyes $5B Revenue by 2028
  • Cloudflare's Developer Platform provides essential components like AI models, workflows, and APIs, addressing the challenges in developing autonomous AI agents that enhance productivity.

  • Cloudflare, Inc. has unveiled a suite of new tools aimed at simplifying AI agent development, including a remote Model Context Protocol (MCP) server, durable Workflows, and a free tier for Durable Objects.

  • The expanded Model Context Protocol now supports remote clients, allowing secure connections to external services with integrated OAuth authentication.

  • With the general availability of Workflows, developers can now manage multi-step applications, which are crucial for tasks that require persistence, such as travel bookings.

  • To enhance AI inference accessibility, Cloudflare has deployed GPUs across its global network, minimizing latency and improving user experience.

  • The Model Context Protocol, originally introduced by Anthropic, is gaining traction for its ability to streamline connections between AI tools and data sources.

  • The company's serverless architecture automatically scales resources based on demand, ensuring efficient AI agent deployment in over 190 cities worldwide.

  • Additionally, Cloudflare has launched Cloudflare for AI, a suite of security tools designed to protect AI applications, emphasizing a security-first approach to AI adoption.

  • The company has also acquired Outerbase, a developer database platform, with plans to integrate its features into Cloudflare and support self-hosting options for existing users.

  • Financially, Cloudflare reported a revenue growth of 28.76% and a market capitalization of $33.48 billion, reflecting strong operational efficiency with a gross profit margin of 77.32%.

  • Analysts, including Goldman Sachs, maintain positive ratings for Cloudflare, highlighting its growth potential in AI inference and an increase in Annual Recurring Revenue from new products.

  • Looking ahead, Cloudflare aims to achieve $5 billion in Annual Recurring Revenue by 2028, focusing on expanding its enterprise presence and improving transparency with new financial metrics.

Summary based on 4 sources


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