Cloudflare Boosts AI Development with New Tools and Acquires Outerbase; Eyes $5B Revenue by 2028
April 7, 2025
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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Sources

InfoWorld • Apr 7, 2025
Cloudflare unveils agentic AI development tools
Investing.com • Apr 7, 2025
Cloudflare launches new tools for AI agent development
SSOJet • Apr 3, 2025
Cloudflare Supports Remote Hosting for Anthropic's MCP Servers - SSOJet