# DigitalOcean Acquires Katanemo Labs to Support Production AI Agent Infrastructure

DevFeed: [DigitalOcean Acquires Katanemo Labs to Support Production AI Agent Infrastructure](<https://devfeed.tech/articles/the-agentic-era-demands-a-new-class-of-infrastructure-digitalocean-acquires-katanemo-labs-19870.md>)

Original publisher: [Read original article](<https://www.digitalocean.com/blog/digitalocean-acquires-katanemo-labs-inc>)

Author: Vinay Kumar, DigitalOcean Chief Product & Technology Officer

Published: 2026-04-02T12:30:00Z

Content type: release

Language: en

Sources: [DigitalOcean](<https://devfeed.tech/sources/digitalocean.md>)

Topics: [Digital Ocean](<https://devfeed.tech/topics/digital-ocean.md>), [AI Infrastructure](<https://devfeed.tech/topics/ai-infrastructure.md>), [Orchestration](<https://devfeed.tech/topics/orchestration.md>), [observability](<https://devfeed.tech/topics/observability.md>), [Multi Agent Systems](<https://devfeed.tech/topics/multi-agent-systems.md>), [Deployment](<https://devfeed.tech/topics/deployment.md>)

Tags: [ai](<https://devfeed.tech/tags/ai.md>), [ai-infrastructure](<https://devfeed.tech/tags/ai-infrastructure.md>), [deployment](<https://devfeed.tech/tags/deployment.md>), [digitalocean](<https://devfeed.tech/tags/digitalocean.md>), [multi-agent-systems](<https://devfeed.tech/tags/multi-agent-systems.md>), [observability](<https://devfeed.tech/tags/observability.md>), [orchestration](<https://devfeed.tech/tags/orchestration.md>), [product-updates](<https://devfeed.tech/tags/product-updates.md>)

## AI overview

DigitalOcean acquired Katanemo Labs and plans to integrate Katanemo Labs' Plano data plane and observability capabilities. The combined platform is intended to provide built-in orchestration, execution, and monitoring for teams building and running AI agent applications in production.

## Source excerpt

At DigitalOcean, we have been vocal about our strategic shift: we are building the world's premier Agentic Inference Cloud. Our mission is to provide the foundation where AI-native enterprises build and run production inference at scale. Today, I am thrilled to announce a significant step in that journey: we have acquired Katanemo Labs, Inc., a leader in agentic AI infrastructure. By integrating Katanemo Labs, we are extending our platform further into the critical operational layer of agentic systems. Their technology pairs perfectly with DigitalOcean's philosophy of operational simplicity, predictable economics, and scalable performance. We are also proud to welcome Salman Paracha, co-founder and CEO of Katanemo Labs, as our new Senior Vice President of AI. His team's deep expertise in model research and open-source infrastructure development will be instrumental as we accelerate our mission to provide developers with an agentic inference cloud for running AI in production. Bridging the Production Gap In 2025, the center of gravity in AI shifted from experimentation to production. As the industry moves toward real-world deployment, the hardest problems have shifted from model access and accuracy to the challenges of running reliable, safe, and observable systems at scale. 61% of developers view closing the gap between prototype and production as their single greatest challenge, as found in our Currents research report. McKinsey research shows that fewer than 10% of AI use cases ever make it past the pilot stage. That same research identifies observability as a key capability for enabling large-scale, intelligent agent ecosystems to operate safely.** By bringing Katanemo Labs into DigitalOcean, we are directly addressing this "production gap," delivering core AI primitives--building blocks like orchestration, workflow execution, and safety protocols that make multi-agent systems reliable, observable, and fast to ship into reliable business assets. Accelerating the A