Hassan Maishera
IO Research, an artificial intelligence (AI)-focused blockchain startup, announced on Tuesday that it raised $30 million in a Series A funding round from investors including Hack VC, Solana Labs, and cryptocurrency exchange OKX. The company did not disclose its latest valuation after the Series A round.
The firm’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.
According to the exclusive report covered by Reuters, the team said the funding announcement signals investor interest in AI-driven technologies as well as renewed interest in cryptocurrencies and blockchain technology.
While commenting on this latest development, the Managing Partner at Hack VC, said
"The io.net protocol allows customers to save up to ~90% on their cloud AI cost. In an age where GPU chips are in high demand with global shortages, that is simply an incredible accomplishment.”
Shayon Sengupta, investment partner at Multicoin Capital, which participated in IO's funding round, also added that,
"Industry analysts are still radically underestimating how much compute power will be needed to fuel the next generation of AI (applications).”
AI-related cryptocurrencies have been performing excellently since the start of the year. The CoinDesk Indices Computing Index, which includes AI-linked crypto tokens, has risen 44% in 2024.
There is also optimism regarding the merger of crypto and AI. According to asset manager VanEck, the projected revenues from projects merging crypto and AI would reach $10.2 billion by 2030.
IO Research revealed that the funds would be geared towards expanding its staff, catering to service demand and further building out io.net.
