By Lisa Pauline Mattackal
(Reuters) – IO Research, an artificial intelligence (AI)-focused blockchain startup, said on Tuesday it raised $30 million in a Series A funding round from investors including Hack VC, Solana Labs, and cryptocurrency exchange OKX. IO Research’s primary product, io.net, is a blockchain-based network that allows users with unused graphics processing units (GPU) capacity to provide computing power to resource-intensive AI companies. The funding announcement signals investor interest in AI-driven technologies as well as renewed interest in cryptocurrencies and blockchain technology. Shares of companies linked to AI infrastructure, such as Nvidia and Super Micro Computer, have soared in recent weeks. Meanwhile, the cryptocurrency market has regained some of its lost lustre for investors. Its market capitalization is at its highest since late 2021 at over $2.65 trillion, lifted by gains in the largest cryptocurrency, bitcoin.
The CoinDesk Indices Computing Index, which includes AI-linked crypto tokens, has risen 44% in 2024.
“Industry analysts are still radically underestimating how much compute power will be needed to fuel the next generation of AI (applications),” said Shayon Sengupta, investment partner at Multicoin Capital, which participated in IO’s funding round.
In February, asset manager VanEck projected revenues from projects merging crypto and AI would reach $10.2 billion by 2030.
The round also indicates potential fresh legs for crypto-focused venture capitalists as investors recover from the fallout of cryptocurrency exchange FTX’s implosion and the subsequent collapse of several prominent funds.
IO Research said the funds will help expand staff, cater to service demand and further build out io.net.
The company did not disclose its latest valuation after the Series A round.
(Reporting by Lisa Pauline Mattackal in Bengaluru; Editing by Tasim Zahid)
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