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SAN FRANCISCO - Cloudflare, Inc. (NYSE:NET) announced Monday it has agreed to acquire Replicate, an AI platform that helps developers deploy and run AI models. The acquisition is expected to close within the next two months, subject to customary closing conditions. The announcement comes as Cloudflare shares have experienced volatility, dropping 12.4% over the past week despite an impressive 134.6% gain over the last year.
The deal aims to enhance Cloudflare's Workers developer platform by integrating Replicate's catalog of over 50,000 production-ready AI models. Following the acquisition, Cloudflare developers will be able to access and deploy any AI model globally with a single line of code.
"The goal for our Workers developer platform has always been to abstract away the infrastructure complexities so that developers can focus on the thing they care about most—building and delivering amazing products," said Matthew Prince, co-founder and CEO of Cloudflare.
Replicate has built a substantial developer community around its platform, which simplifies the deployment of complex AI models that typically require specialized GPU hardware and infrastructure. The acquisition will bring Replicate's expertise to Cloudflare's AI inference and container capabilities.
Ben Firshman, co-founder and CEO of Replicate, stated, "We're still in the early innings of developers building AI applications, and too much of the complexity falls on the developer today. Replicate was founded on the mission to solve that."
The integration is expected to allow developers to discover models from Replicate's catalog, deploy them instantly on Cloudflare's global network, and build full-stack applications in one place, according to the company's press release statement.
Financial terms of the acquisition were not disclosed.
In other recent news, Cloudflare has reported robust third-quarter 2025 earnings, prompting several firms to revise their stock price targets. Stifel highlighted Cloudflare's significant top-line beat and increased its price target to $275, maintaining a Buy rating. Similarly, Truist Securities also set a $275 price target, citing strong growth in Cloudflare's largest customer cohort and success with various products. TD Cowen raised its price target to $265, noting the company's 31% revenue growth and 43% rise in remaining performance obligations, leading to an upward revision of future guidance.
Cantor Fitzgerald increased its target to $224, maintaining a Neutral rating, and acknowledged Cloudflare's 3% revenue beat and improved guidance. Piper Sandler adjusted its target to $249, emphasizing Cloudflare's impressive execution and growth in remaining performance obligations. These developments reflect Cloudflare's continued momentum in expanding its market presence and financial performance.
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