Why DigitalOcean Needs Katanemo Labs More Than GPUs Right Now

DigitalOcean acquired Katanemo Labs, including the open-source Plano data plane and small action models.

Plano is an Envoy-based, framework-agnostic data plane that manages orchestration, safety, observability and model routing for agentic apps.

DigitalOcean says the deal won't materially affect 2026 results and is integrating Plano to ease production deployment gaps in agentic AI.

DigitalOcean's AI ARR reached $120M and over 70% of AI revenue comes from inference services and core cloud products.