One-third of Backblaze’s new bookings now stem from AI-related demand, with larger contracts and faster customer acquisitions.
Backblaze (NASDAQ:BLZE) said artificial intelligence workloads are driving a shift in its cloud storage business, accounting for one in three new bookings. Customers are seeking storage solutions compatible with multiple GPU providers and emerging “Neoclouds” rather than relying on single hyperscalers.
The company highlighted larger AI and Neocloud deals, including six-, seven-, and eight-figure contracts, such as a $1 million annual recurring revenue customer signed in 11 days. Backblaze is expanding its product lineup with higher-throughput offerings like B2 Overdrive and Shard Stash to support AI data transfers.
Management aims for adjusted free cash flow positivity by late 2025 and full-year 2026 but noted that capital needs may rise to capture growth opportunities.