Solana-based io.net Raises $30M in Series A Funding
IO Research, the developer of the decentralized physical infrastructure network io.net, has successfully raised $30 million in a Series A funding round. This funding has pushed the valuation of its fully diluted token to $1 billion, marking a significant milestone for the company.
Funding Round Led by Hack VC and Angel Investors
The Series A funding round was led by Hack VC, a venture capital firm, in collaboration with several angel investors. These investors include Multicoin Capital, 6th Man Ventures, Solana Ventures, OKX Ventures, Aptos Labs, Delphi Digital, The Sandbox, Sebastian Borget of The Sandbox, and others.
The funds were raised in tranches and structured as a simple agreement for future equity (SAFE) with token warrants in a 1:1 ratio. The first tranche took place in January, and the final one was completed recently.
Terms of Investment and Lock-in Period
Ahmad Shadid, the CEO and founder of io.net, explained the terms of the investment. Investors have a minimum one-year lock-in period for tokens, ensuring stability and commitment to the project.
Shayon Sengupta from Multicoin Capital confirmed the news of the investment and highlighted his relationship with io.net’s founder. He praised Shadid’s focus on democratizing access to compute resources for ML workloads as a key factor that attracted him to the project.
Boosting AI Protocol with $30 Million Fund
This $30 million fund will enable io.net to enhance its Artificial Intelligence (AI) protocol. The company aims to improve the aggregation of distributed GPUs, especially during a time when there is a shortage of computers and a growing demand for AI capabilities.
Other AI-based firms, such as NVIDIA, are also stepping up their efforts to meet the increasing demand. In mid-January, NVIDIA gained attention in the AI market as Chinese military entities, state-owned research centers, and universities actively purchased batches of the company’s semiconductors.
OpenAI, led by Sam Altman, is following a similar path by seeking funding to build high-performance chips. The company plans to establish multiple chip foundries to attract investor interest and expand its capabilities.
NVIDIA Expanding Dominance in the AI Sector
NVIDIA’s pursuit of new opportunities is contributing to its growing dominance in the AI sector. One of its recent projects involves designing a new AI chip specifically for the Chinese market.
The surge in demand for AI technology has created a need for companies to develop innovative solutions and expand their infrastructure. io.net’s successful funding round will further strengthen its position in the market and support its mission of democratizing access to compute resources.
Hot Take: io.net Secures $30M Series A Funding for Solana-based Infrastructure Network
IO Research’s io.net has achieved a major milestone by securing $30 million in Series A funding. This successful round has propelled the valuation of its token to $1 billion, reflecting investor confidence and support for its decentralized physical infrastructure network built on Solana.
The funding round, led by Hack VC and supported by prominent angel investors, highlights the growing interest in AI protocols and the need for enhanced compute resources. With this significant investment, io.net can further develop its protocol and address the current shortage of GPUs.
As the AI market continues to expand, companies like NVIDIA are also capitalizing on the demand by designing tailored solutions and exploring new opportunities. This funding round not only strengthens io.net’s position but also contributes to the overall growth and development of the AI sector.
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