When you look beyond the surface of every new, flashy tech phenomenon, you will usually find a somewhat boring but incredibly valuable backbone that keeps the innovations coming. For generative AI, compute power is the bedrock behind the boom. However, computing resources are both abundant and incredibly unattainable for multiple reasons.
Investing in computing resources in the AI era comes with several challenges. Namely, high capital costs that stretch upwards of tens of millions of dollars each, technical complexities, and supply constraints all impact how much compute is actually available. This is before you add that the GPUs essential to computing power are scarce due to manufacturing limitations and tech giants snapping up as many as they can to retain their edge in the AI race.
So, when a tech resource becomes so sought after, average investors also want to get in early. However, investing in GPUs or accessing computing resources is not just about buying software— it requires a deep understanding of how to deploy, optimize, and manage those resources, requiring technical experience that most investors lack.
To answer the call for easier access to investing in AI's backbone, Exabits transforms high-end GPU clusters into attainable assets through tokenization. Recently, the compute-base layer platform landed $15 million in a seed funding round, boosting its valuation to $150 million on top of an impressive $10 million in ARR.
Exabits grants participants a new model to gain GPU ownership by fractionalizing high-value compute assets through tokenization. In essence, participants can gain direct exposure to GPU compute assets, effectively allowing Exabits's model to form a liquid market that enhances decentralized ownership. Participants are beneficiaries of the rising value of compute assets and the rewards of contributing and participating in the Exabits ecosystem.
With Hack VC and several other investors leading this funding round, the influx of funding follows a previous round led by Portal Ventures. Exabits is developed by a team of compute and AI sector experts who will use the funding to support the platform's R&D efforts, including brand creation, technology improvement, and operational excellence for its compute financialization product.
Speaking about why Exabits's goal is so impactful, Co-Founder Dr. Hoansoo Lee said: "At Exabits, our goal is to redefine the AI compute landscape by positioning compute resources as valuable financial assets. The performance of GPU compute has outpaced both Bitcoin and gold, demonstrating a clear upward trajectory. AI's impact on the world is only scratching the surface, and we are excited to be at the forefront of this evolution, driving growth and market traction through the development of our advanced infrastructure and unique GPU tokenization model."
Since launching, Exabits has been incubated by several prestigious institutions, including the Stanford Blockchain Accelerator, Berkeley Xcelerator, and is the first and only blockchain project incubated by the Harvard Innovation Labs. The platform has also formed strategic collaborations with The University of Texas at Austin, Seoul National University, National University of Singapore, io.net, Aethir, and more to expand its reach and adoption.
Aside from its academic and business collaborations, Exabits has built a successful internal business to support its growth.
Thanks to its proprietary software and hardware, Exabits is a trusted base layer provider for decentralized marketplaces and Web 2.0 companies, and maximizes compute output for users. Over the past year, Exabit's revenue has surged, growing at an average of 300 percent each quarter, highlighting its value proposition and strong market demand.
Ed Roman, Co-Founder and Managing Partner of Hack VC added this regarding Exabits's appeal: "What impressed me about Exabits is its proprietary technology for optimizing AI compute and its deep understanding of the compute industry. As a foundational builder of AI infrastructure, they have the potential to become the base layer of the industry, which presents a vast market opportunity. Nobody better combines knowledge and technological expertise in both the compute and crypto worlds. We are impressed by their ambition and the scale of their vision and have confidence in their ability to execute it."
