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Spectro Cloud, a Goldman Sachs–backed (NASDAQ:GS) startup valued at about $750 million, announced on Tuesday that it entered a strategic partnership with Nvidia (NASDAQ:NVDA) to address one of the biggest challenges in artificial intelligence: approximately 70% of computing power that often sits unused.

Spectro Cloud unveiled its PaletteAI platform with Nvidia integration, which promises to increase graphics processing unit efficiency from 30% to 60%, potentially saving enterprises millions on infrastructure costs, Business Insider reported.

“AI infrastructure is super expensive,” Spectro Cloud co-founder and CEO Tenry Fu told BI, adding that most organizations achieve only 30% GPU utilization. “That’s not really the best way to put such an expensive hardware into use,” he said.

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Many organizations spend large sums on Nvidia hardware and software but still face management challenges that leave much of their computing power unused, according to BI.

PaletteAI serves as what Spectro Cloud Chief Technology Officer Saad Malik calls the “glue layer,” BI reported. The platform connects different hardware and software components, helping them work together without friction.

The system integrates with Nvidia AI Enterprise software and tools such as Nvidia NeMo and Nvidia NIM, according to Spectro Cloud. While designed for Nvidia technologies, PaletteAI remains open and flexible, allowing companies to connect products from other technology providers as well.

“Growing adoption of AI across every industry calls for scalable, adaptable infrastructure that bridges the data center and the edge,” Nvidia Senior Director of Enterprise Anne Hecht said in Spectro Cloud’s statement. “Spectro Cloud’s integration of full-stack Nvidia AI is empowering enterprises to build and operate AI factories with performance, efficiency, and trust.”

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Spectro Cloud Chief Revenue and Marketing Officer Dave Cope told BI that the pace of technological change has reached an entirely new level. “We live in a really interesting time now where, for the first time and perhaps ever, we have — because of AI — everything changing rapidly and at the same time,” he said, adding that AI is transforming multiple areas of business at once, creating constant pressure to adapt.

Cope said this fast evolution adds what he called a “tremendous amount of complexity” that can slow innovation and delay adoption, BI reported.

PaletteAI addresses that challenge with what Spectro Cloud describes as “one-click deployment” of AI systems. The platform separates roles between administrative teams, who manage governance and security, and AI specialists, who need freedom to experiment and build new solutions.

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PaletteAI offers advanced security functions using Nvidia BlueField data processing units, which enable zero-trust access and support federal information processing standards compliance. According to Spectro Cloud, the platform automates setup, provisioning, and management across cloud, data center, and edge environments.

Enterprises can create full AI environments using Nvidia infrastructure in a matter of hours instead of weeks, Spectro Cloud said. The system supports the latest Nvidia technologies, including Blackwell GPUs, Grace central processing units, and the BlueField-3 and BlueField-4 data processing units.

Administrative teams manage oversight through policy controls while AI practitioners work from approved templates, creating an environment that stays efficient, secure, and consistent across every deployment, Spectro Cloud said.

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This article Nvidia Partners With $750M Startup Spectro Cloud To Fix AI’s Biggest Problem: Companies Waste 70% Of Their GPU Computing Power originally appeared on Benzinga.com

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