The blockchain firm IO Research, which focuses on artificial intelligence (AI), said on Tuesday that it has secured $30 million in a Series A fundraising round from investors led by Hack VC along with other prominent investors that include Multicoin Capital, Delphi Digital, Solana Labs, Aptos Labs, OKX and more.
The main offering from IO Research is io.net, a blockchain-based network which is the biggest decentralized network for GPU computing. It enables consumers to provide their surplus GPU capability to resource-intensive artificial intelligence businesses.
A revived interest in cryptocurrencies and blockchain technology, together with investor interest in AI-driven technologies, is indicated by the funding disclosure. In recent weeks, the stock prices of firms associated with artificial intelligence infrastructure, like Nvidia (NVDA.O) and Super Micro Computer (SMCI.O), have seen a sharp increase.
Investor interest in the crypto market has revived in the meantime. Gains in the biggest cryptocurrency, bitcoin, have helped to drive the total market cap to above $2.65 trillion, the highest level since late 2021. AI-related cryptocurrency tokens are included in the CoinDesk Indices Computing Index, which has increased 44% in 2024.
Shayon Sengupta, investment partner at Multicoin Capital, a company that took part in IO’s fundraising round stated:
“Industry analysts are still radically underestimating how much compute power will be needed to fuel the next generation of AI (applications).”
Asset management VanEck predicted in February that by 2030, the combined earnings from cryptocurrency and AI initiatives will amount to $10.2 billion.
The round also suggests that venture capitalists with a focus on cryptocurrencies may see new growth as investors bounce back from the consequences of the collapse of FTX, a major cryptocurrency exchange, and the subsequent failure of numerous well-known funds.
The funds, according to IO Research, will support hiring more employees, meeting demand for services, and developing io.net. Following the Series A round, the firm remained silent about its latest valuation.
