Blocks
Category: AI Infrastructure
Blocks is an AI-powered cloud cost optimization startup that uses an autonomous AI agent called Major Tom to reduce AWS bills for startups by at least 20%. Blocks was founded in 2025. The company is led by Dr. Oliver Merkel. Based in Berlin, Germany. Team size: 11-50. Total funding raised: $6M. Latest round: Pre-Seed. Key investors include Speedinvest, Caesar Ventures.
- Founded
- 2025
- Headquarters
- Berlin, Germany
- Team size
- 11-50
- Total funding
- $6M
Value proposition
Autonomous AI-driven cloud cost optimization that guarantees 20%+ AWS savings with no infrastructure changes, no code access, and zero risk — the AI agent (Major Tom) acts as a 24/7 DevOps engineer that finds and fixes cloud waste automatically.
Products and solutions
Blocks platform with Major Tom (Agentic DevOps AI agent) — autonomously monitors AWS infrastructure, identifies waste/inefficiencies, and applies real-time optimizations, Group buying program that aggregates cloud spend across members for volume discounts, Guaranteed 20%+ AWS cost reduction
Unique value
Unlike traditional FinOps dashboards that only surface problems, Blocks' AI agent Major Tom autonomously detects AND fixes cloud cost issues in real-time without human intervention, while also offering group buying power for AWS volume discounts.
Target customer
Startups and fast-growing tech companies with significant AWS spend that lack dedicated FinOps teams
Industries served
Technology, SaaS, E-commerce, any cloud-native startup on AWS
Technology advantage
Agentic AI (Major Tom) that doesn't just monitor but autonomously remediates cloud issues; Group buying aggregation model for volume discounts; "Zero risk, zero lock-in" approach with no infra changes required; Takes a percentage of savings rather than charging a flat fee
How they differentiate
AI agent (Major Tom) autonomously fixes cloud issues vs. just dashboard warnings; Group buying model aggregates spend for volume discounts; "Zero touch" — no infra changes or code access needed; Performance-based pricing (cuts of savings saved, not flat fees); Founded by serial entrepreneurs with lived experience scaling Flink
Main competitors
Vantage, CloudZero, Cast AI, ProsperOps (Flexera), Kubecost (IBM)
Key partnerships
AWS Select Tier Partner (as stated on blocks.cloud/pricing)
Notable customers
Over 50 companies across Europe (per invest-in.berlin), 100+ members (per blocks.cloud/pricing) — specific customer names not publicly disclosed
Major milestones
Launched in 2025/2026, Raised $6M oversubscribed pre-seed from Speedinvest and Caesar Ventures (April 2026), Hit $1M ARR in first month of operation, More than 50 companies already using the platform, Guarantees 20%+ AWS cost reduction
Growth metrics
$1M ARR achieved in first month; 50+ customers; 100+ platform members; 20%+ guaranteed cloud savings
Market positioning
Blocks positions itself as an autonomous AI agent for cloud cost optimization, differentiated from visibility-first competitors (Vantage, CloudZero) by its agentic approach that automatically fixes issues without human intervention. It is targeting the startup/scale-up segment with a unique group buying model.
Geographic focus
Europe (headquartered in Berlin, Germany) with expansion plans
About Dr. Oliver Merkel
Co-founder of Flink (European quick-commerce grocery delivery, scaled to 10,000+ employees); Senior Partner at Bain & Company leading retail practice; PhD in Management & Controlling (Dr. rer. pol.)
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Official website: https://blocks.cloud