Cloudflare Boasts New Tools and a Strategic Acquisition

Published:April 8, 2025

Reading Time: 2 minutes

On Monday, Cloudflare announced several updates and a new acquisition. These changes would help developers build smarter, faster, and more cost-effective AI agents. Cloudflare also acquired Outerbase, a startup known for its user-friendly developer database platform. This will add powerful backend capabilities to Cloudflare’s AI toolkit.

With these updates, Cloudflare wants to make it easier for anyone to build full-stack AI applications. No complex setup required.

AI Agents Are the Future

AI agents can make decisions, complete tasks, and work on their own. As interest in these tools grows, Cloudflare is making sure developers have everything they need. Matthew Prince, Cloudflare’s Co-founder and CEO, put it simply:
“Cloudflare is the best place to build and scale AI agents. Period.”

To back that up, Cloudflare rolled out a set of tools and features, including:

  • AutoRAG (in open beta): A managed service that helps developers add Retrieval-Augmented Generation (RAG) to apps with just a few clicks. 
  • Cloudflare Workflows: Now fully released, this tool helps developers build and run serverless apps that respond to events automatically.
  • Durable Objects (now free): These let apps store and share real-time data. Before, this was only available to paying users. 
  • Agent hibernation: This feature pauses inactive sessions to cut down on compute costs. Therefore, agents can stay connected without wasting resources.
  • Bring Your Own Authentication (BYO auth): Developers can now plug in their favorite login tools, including Auth0, Stytch, and WorkOS.

Also read: 20 AI Agent Examples in 2025

One Hub for Everything AI

To make things even easier, Cloudflare launched a new Developer Hub for AI agents. This hub puts all essential tools in one place. Hence, developers can find what they need quickly: code, APIs, docs, and deployment options. This central location also speeds up development and removes the need to juggle multiple platforms.

Outerbase Joins the Cloudflare Ecosystem

Cloudflare didn’t stop at tools. It also bought Outerbase, a platform that helps developers manage databases with ease. The acquisition has gained significant backend power for Cloudflare.

This means developers can now:

  • Store persistent data for AI agents
  • Track user sessions
  • Run full-stack applications with ease

For example, an AI support bot can now remember past chats. That means it can give faster, more personalized help.

Benefits for Developers

  • Faster work rates 
  • Cost reduction due to free durable objects 
  • Increased flexibility
  • Developers can build full-stack apps

Lolade

Contributor & AI Expert