Elastic Debuts Cloud-Hosted GPU Inference and AI Agent Builder Preview
Elastic on February 2 launched Elastic Inference Service via Cloud Connect to give self-managed customers on-demand cloud-hosted GPU inference without hardware requirements. On January 22, it introduced Agent Builder platform and technical preview of Elastic Workflows to enable developers to create and automate AI agents across enterprise data.
1. Elastic Inference Service Launch
On February 2, Elastic rolled out Elastic Inference Service via Cloud Connect enabling self-managed customers to access cloud-hosted GPU inference for embedding and reranking models without investing in hardware. The service maintains on-premises data control while streamlining AI deployment.
2. Agent Builder and Workflows Preview
On January 22, Elastic introduced Agent Builder platform for creating AI agents that ingest, prepare, retrieve, rank, and monitor enterprise data. Elastic Workflows, in technical preview, extends agent capabilities by executing actions across multiple systems using combined AI reasoning and rule-based automation.
3. Rosenblatt Securities Price Target Revision
Rosenblatt Securities reiterated a Buy rating but lowered its price target to $110 from $130, citing multiple compression and macroeconomic pressures on enterprise software valuations. Despite the cut, analysts anticipate Elastic’s stronger-than-expected third-quarter fiscal 2026 performance.
4. Market Position and Adoption
Elastic’s search AI platform powers search, observability, and security use cases for over half of the Fortune 500, reinforcing its footprint in AI-driven cybersecurity. The new services aim to expand adoption among self-managed customers by reducing infrastructure complexity and accelerating time-to-value.