IO Research Raises $30 Million in Series A Funding for io.net, Reaches $1 Billion Token Valuation
IO Research, the developer of Solana-based decentralized physical infrastructure network (DePIN) io.net, has successfully raised $30 million in a Series A funding round. The funding round was led by Hack VC and saw participation from Multicoin Capital, 6th Man Ventures, Solana Ventures, OKX Ventures, Aptos Labs, Delphi Digital, The Sandbox, and other investors. With this funding, IO Research has reached a fully diluted token valuation of $1 billion.
The funding round took place in tranches and was structured as a simple agreement for future equity (SAFE) with token warrants in a 1:1 ratio. Most investors joined the round earlier at a valuation of $500 million. IO Research began raising funds for the round in January of this year and closed the final batch recently.
The Growth of io.net and Its Potential
Io.net is a Solana-based DePIN project that focuses on sourcing GPU computing power. It aims to aggregate GPU resources for AI and ML companies at lower costs and faster lead times. Since its launch in November 2020, io.net has grown to over 25,000 GPUs and processed over 40,000 compute hours for AI and ML companies.
According to Shayon Sengupta, an investment partner at Multicoin Capital, GPUs are considered โthe scarcest commodity in the world.โ He believes that industry analysts are underestimating the amount of computing power needed for the next generation of AI apps. Io.net has the potential to democratize GPU computing by providing transparent proof-of-compute using the Solana blockchain.
The IO token plays a crucial role in the io.net ecosystem. It provides a unified transaction experience for users and enables incentive mechanisms for suppliers, customers, and users to participate and grow the network. The use of the Solana blockchain ensures transparent proof-of-compute and makes every job and transaction visible on-chain.
Impact of io.net on Cloud AI Costs
Io.net has been successful in saving customers up to 90% on their cloud AI costs. This achievement is particularly significant considering the global shortage of GPU chips. Ed Roman, the managing partner at Hack VC, described it as an incredible accomplishment.
Future Plans and Expansion
With the new funding in place, IO Research plans to expand its current team of around 50 employees to 100 by the end of the year. This expansion is necessary to meet customer demand and continue building out the network.
Hot Take: io.net Raises $30 Million in Series A Funding, Reaches $1 Billion Token Valuation
IO Researchโs successful Series A funding round and its $1 billion token valuation showcase the growing interest in decentralized physical infrastructure networks like io.net. With its focus on sourcing GPU computing power for AI and ML companies, io.net has the potential to revolutionize the industry by democratizing GPU computing and reducing cloud AI costs. The use of the Solana blockchain ensures transparency and efficiency in transactions, making it an attractive option for businesses looking to leverage AI and ML technologies.
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