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Photo provided by EMC

As interest in artificial intelligence (AI) continues to rise, there is a growing trend of cryptocurrency projects attempting to combine AI with blockchain.

Among AI-related cryptocurrency projects, the most representative type is the decentralized graphics processing unit (GPU) project that rents out GPUs. Decentralized GPUs are a type of decentralized physical infrastructure network (DePIN), which involves uploading unused computing power to the blockchain and renting it out to developers or startups that need computing power.

EdgeMatrixChain (EMC) is also one of the DePIN projects that operate GPU rental services. However, it is distinguished from other GPU rental DePINs by its ability to provide DeFi and creative platforms using a Layer 1 blockchain. Previously, in August, EMC raised a total of $20 million from venture capital firms such as P2 Ventures and Amber Group for the development of its Layer 1 blockchain.

Why is Decentralized GPU Necessary?

Graphics Processing Unit. /Photo provided by EMC

Decentralized GPU projects have emerged as a solution to the GPU acquisition problem, which is currently the most important issue in the AI industry.

Since the emergence of OpenAI's ChatGPT, many have jumped into AI development, leading to a surge in GPU demand while supply remains severely lacking. As a result, high-performance GPUs used in AI development are currently as expensive as a car. While big tech companies like Meta and Microsoft have no major issues purchasing expensive GPUs, startups and individual developers face financial difficulties.

The demand for GPUs can be seen in NVIDIA's third-quarter report, which practically monopolizes the GPU market. NVIDIA reported that its third-quarter revenue and net profit surged by 94% and 106% year-on-year to $33.16 billion and $19.39 billion, respectively, exceeding market expectations.

Decentralized GPU DePINs offer an alternative by significantly reducing the cost of GPU computing resources. Binance highlighted in its first-half report this year that "as interest in AI grows, the cost of computing resources like GPUs has increased," and noted that "decentralized GPU DePINs have emerged as a cost-effective alternative."

There is also hidden demand for decentralized GPUs from Chinese AI developers sanctioned by the United States. According to the Wall Street Journal, after being blocked from Amazon Web Services, Chinese AI developers are turning to decentralized GPUs as an alternative. The media cited EMC as an example, noting that decentralized GPUs, with features like anonymity through smart contracts, are becoming an attractive option for Chinese AI developers.

EMC, a One-Stop Platform for AI

Alex Go, founder of EMC, explaining the NVIDIA H100 cluster SuperPOD at Token 2049. /Photo provided by EMC

As mentioned earlier, EMC is a project that rents out the computing power of GPUs. To this end, EMC currently has 274 nodes on its blockchain and has registered over 3,000 GPUs. The GPUs provided by EMC include NVIDIA A100, GeForce RTX 4090, and GeForce RTX 3090.

Among them, the cluster 'SuperPOD' made by assembling 1,024 'NVIDIA H100' GPUs is considered EMC's strength. Previously, EMC participated in the 'Singapore Token 2049' conference and showcased a real-time demo of SuperPOD.

EMC not only rents out GPUs but also provides users with various AI-related services. For example, it offers a platform business that allows users to develop AI more easily and turn it into content. The EMC AI platform, EMC HUB, includes ▲ AI agent Jarvis Bot for generating various content, ▲ creative work trading application OmniMuse, and ▲ 3D content creation application ZoZoWorld.

Additionally, EMC assists in building networks suitable for AI use. Specifically, it has implemented technologies such as smart routing and data caching to achieve low latency and high transaction throughput in the network. EMC stated, "Our goal is to become a platform that encompasses almost everything in the AI field," and "developers will be able to smoothly test and launch their AI models on the EMC network."

Furthermore, EMC also provides DeFi services using GPUs. Currently, anyone can purchase the computing power of NVIDIA H100 GPUs in token form within EMC, and by staking it through EMC's DeFi, they can earn additional income of about 2.7% to 7.1% annually depending on the period. Currently, about 2.6 million EMC tokens are staked in this DeFi service.

Photo captured from CoinMarketCap

According to CoinMarketCap, as of 10 a.m. on the 6th, EMC tokens are trading at $0.079, down 4.91% from the previous day. The circulating EMC tokens amount to about 30 million, accounting for 3% of the total supply (about 1 billion). The market capitalization is approximately $2.37 million.

Meanwhile, EMC is generating about $15 million in annual revenue. Although the business scale is not yet large, the outlook for decentralized GPU projects is generally positive. Data analytics firm Nansen, in a report published with MetaStreet, projected that "considering the DeFi income from GPU rental services, tokenomics, and GPU rental revenue, the total revenue of these services could surge by at least 30% to as much as 200%."