An Internet of GPUs To Power AI

Author

Alpha
March 08, 2024

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∆ Tech in the News

Leadership Saga Continues - CTO Mira Murati played a key role in ousting CEO Sam Altman from OpenAI According to a new report from The NYT.

Tech "Gatekeepers" - The EU’s Digital Markets Act took effect, requiring the Big 6 Tech giants to ensure fair and open markets and interoperability.

ESG Disclosure - The SEC approved new corporate emissions disclosure requirements, creating opportunities for carbon management startups.

"Low-Quality AI-Generated Content" - Google will attempt to improve search rankings, including addressing spammy and automated content.

AI WhistleBlower - A senior Microsoft software engineer escalated concerns to the FTC and the company’s board about a lack of action to prevent the OpenAI-powered Copilot Designer tool from generating harmful images.

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The Hottest Thing in Tech this Week

The Decentralized Cloud Powering AI

Solana-based “decentralized physical infrastructure network” (DePIN) startup IO Research envisions an ‘Internet of GPUs’ to alleviate the GPU scarcity caused by AI’s rapid expansion. It just closed a $30M Series A round at a fully diluted token valuation of $1B, so this sector of combining blockchain and AI GPUs is one to watch closely. The combined market cap of the global top 10 cloud companies is $5 trillion, and DePIN sits at just 0.1% of that. 

Becoming a Node Operator

Node operators form the backbone of DePIN by providing the computing power that drives AI and ML applications and blockchain networks. By contributing GPU resources to networks like IO Research's io.net, node operators earn tokens and support the growth of a cutting-edge ecosystem.

Scaling Your Node Operation

  1. Solo Mining - Start by contributing idle GPU resources (e.g., Macbook M3) to a DePIN network, earning tokens based on the provided computing power.

  2. Building a Local Network- As you accumulate more GPUs, set up a local network of nodes to increase earning potential.

  3. Partnering with Other Node Operators - Collaborate with other node operators to create a larger, more efficient network capable of handling complex AI and ML workloads.

  4. Offering DePIN Services - Provide specialized DePIN services to businesses and developers to differentiate yourself and tap into new revenue streams (e.g., hyperbolic.xyz).

Crypto or Non-Crypto DePIN

Not all DePIN projects are token based. Crypto-based networks like IO Research's io.net offer token-based rewards and decentralization benefits, while non-crypto alternatives offer more stability and have broader market appeal. 

The Multi-Trillion Dollar DePIN Opportunity

With the global cloud computing market valued at $5 trillion and DePIN predicted to be a top "crypto narrative" in 2024 per the Binance Research Report 2024, node operators have tons of opportunities. However, the big challenge for companies like io.net is they are competing against web2 giants like Amazon, Microsoft and Google. If DePIN companies could increase their market share even a tiny amount, they would be doing very well.

Reply “NODE OPERATOR” to this email if you would like to learn more.

"Io.net saves customers up to 90% on their cloud AI costs. In an age where GPU chips are in high demand with global shortages, that is simply an incredible accomplishment."

- Ed Roman, managing partner at Hack VC

[POLL] Would you offer up GPU space in return for token payments?

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Career Hive

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Deals We’re Watching

Founders to Watch and Opportunities to Catch

Open Deals:

Looking to invest? Let us know if you want a warm intro —> [email protected]

  1. Unicorn Founder Launches AI Learning Platform - Orlando, FL - After a season of unicorn growth and strategic M&As, software founder/CTO transitions to next venture to disrupt the education sector. [Four-letter-name].com. Open to follow on investors. Seed Stage.

  2. Outbound B2B Campaign AI Co-Pilot - Lexington, MA - Turn any CRM into an AI optimized sales agent for personalized customer campaigns. Hubspot and Saleforce API integration. Post revenue. Pre-Seed Stage.

  3. AI-agent for Professional Intros - Irvine, CA - Existing Tech/finance media company looking for growth funding to launch autonomous co-pilot that introduces founders/builders to individuals that can support their growth. Audience of ~600k active members. (Open to financing discussions).

  4. AI/ML for Healthcare Admin Billing - Los Angeles - Simplify health documentation with translatable billing and QA for faster Dx coding. Post revenue. 20 Major healthcare clients in pipeline. Multiple awards for top 1% in industry. PMF/FMF. Serial entrepreneur/founder of medical group. Early traction. Raising Pre-A round.

  5. MedSpa InsurTech - Palm Beach, FL - Accelerating first-to-market aesthetics procedure insurance for US medspas. 700+ plans, 0 claims over 4 locations generating $23K in 12 weeks. On track for 2K+ locations in 2024. Founders have multiple exits to public companies.

  6. Seeking to partner with 1 Real Estate Developer looking to optimize their workflow - Texas - Building an AI Copilot for Parcel Identification. Experienced engineering/cybersecurity team, currently engaged in active DOD contracts. (Stakeholder Equity). Proptech.

Raising for your startup? Send us your Open Round —> [email protected]

Closed Deals:

#1 Biotech Deal 2024 - Ca. startup Alumis closed a massive $259M Series C to develop oral therapies to combat immune dysfunction.

Geothermal Energy - Texas startup Fervo Energy closed a $244M round backed by Devon Energy and Mitsubishi for its “24/7 energy solution”.

AI ERTs - BlackRock chipped in $75M to a $150M Series C for Baltimore startup RapidSOS to build its AI platform for emergency response teams.

ML Security - Alphabet joined San Jose startup Dtex Systems’ $50M Series E at $400M+ to spot potential insider security breaches with ML.

Quantum Fridges? - Denver startup Maybell raised $25M to develop its quantum computing infrastructure for technologies such as refrigeration.

DeepMind Alums - Ex-Googlers landed a $13.8M seed for the stealthy Haiper AI video generation tool with plans to build AGI with full perceptual abilities.

Companies to Watch:

Axonius - The NYC Cybersecurity startup is one of the fastest ever to achieve $100M ARR, reaching 1k platform integrations and 500+ enterprise clients incl. News Corp, and Anheuser-Busch. Also, just closed a $200M Series E extension at a flat $2.6B was co-led by Accel and Lightspeed.

Perplexity - The Bezos-backed AI search startup with $10M ARR and ~50M users is in talks with investors on a round set to double its valuation to $1B.

The Funding Buzz

Andreessen Horowitz - Is near to closing on ~$7B for a collection of new funds, including 15% to two AI funds, 10% to a gaming fund, and 10% to its "American Dynamism" fund.

Silas Capital - Closed its fund II at $150M to invest in high-growth next-gen consumer brands, including personal care, beauty, fashion, and wellness.

Alliance of Angels - The Seattle VC firm is raising a third Innovation Fund from its network of ~200 angel investors to invest in 14 Pacific NW startups.

Nothing Phone 2a - Has new CMF Buds and native perplexity AI search.

Snowflake - Partners with Mistral AI to take open LLMs to the data cloud.

Buzzy Tech

Nvidia - 1,000-watt GPU “AI accelerator” due late 2024 could 2x LLM speeds.

Huawei - New magneto-electric storage device offers 10 petabytes per rack.

Earth Digital Twin - A digital twin of Earth to simulate natural disasters.

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