What's up, Jarvis?
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- Recently, with the combination of AI and blockchain, decentralized GPU projects are increasing, and related investment attraction is active.
- In particular, EMC is securing differentiated competitiveness by providing Nvidia H100 GPU rental and various AI-related services.
- Although the EMC token is currently on a downward trend, it is receiving positive evaluations with expectations for the growth potential of the decentralized GPU market.
- The article was summarized using an artificial intelligence-based language model.
- Due to the nature of the technology, key content in the text may be excluded or different from the facts.
Photo provided by EMC
As interest in artificial intelligence (AI) continues to rise, there is a growing trend of virtual asset (cryptocurrency) projects attempting to combine AI with blockchain.
The most representative type of AI-related virtual asset projects is decentralized graphics processing unit (GPU) projects that lease 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 evaluated as being differentiated from other GPU rental DePINs because it can provide DeFi and creative platforms using layer 1 blockchain. Previously, in August, EMC attracted a total investment of $20 million from venture capitalists such as P2 Ventures and Amber Group to develop 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 task in the AI industry.
Since the emergence of Open AI's Chat GPT, everyone has jumped into AI development, causing a surge in GPU demand while supply remains woefully inadequate. As a result, high-performance GPUs used in current AI development are priced at the level of 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 virtually monopolizes the GPU market. Nvidia reported that its revenue and net profit in the third quarter increased by 94% and 106% year-on-year, respectively, to $33.16 billion and $19.39 billion, far exceeding market expectations.
Decentralized GPU DePIN is becoming an alternative that can significantly reduce the cost of GPU computing resources, solving these problems. Binance highlighted in its first-half report this year that "as interest in AI grows, the cost of computing resources such as GPUs has increased," and "decentralized GPU DePIN has emerged as a cost-effective alternative."
There is also hidden demand for decentralized GPUs. These are AI developers in China who have been sanctioned by the United States. According to the Wall Street Journal, Chinese AI developers have turned to decentralized GPUs as an alternative after being blocked by Amazon Web Services. The media cited EMC as an example, evaluating that decentralized GPUs, which feature 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, is explaining the Nvidia H100 cluster SuperPOD at Token2049. /Photo provided by EMC
As explained earlier, EMC is a project that leases the computing power of GPUs. To this end, EMC currently has secured 274 nodes on its blockchain and registered more than 3,000 GPUs. The GPUs provided by EMC include Nvidia A100, GeForce RTX 4090, and GeForce RTX 3090.
In particular, 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 demonstrated a real-time demo of SuperPOD.
EMC not only leases 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. EMC's AI platform, EMC HUB, includes ▲AI agent Jarvis Bot that can generate various content, ▲creative transaction application OmniMuse, and ▲3D content generation application ZoZo World.
Additionally, EMC helps build networks suitable for AI use. Specifically, it has implemented low latency and high transaction throughput in the network by introducing technologies such as smart routing and data caching. 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 is also providing DeFi services using GPUs. Currently, anyone within EMC can purchase the computing power of Nvidia H100 GPUs in token form, and by staking it through EMC's DeFi, they can earn an 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, EMC tokens are trading at $0.079 as of 10 a.m. on the 6th, down 4.91% from the previous day. The currently circulating EMC tokens account for about 3% of the total supply (about 1 billion), with a market capitalization of $2.37 million.
Meanwhile, EMC is earning about $15 million annually. Although the business scale cannot be considered large yet, the outlook for decentralized GPU projects is generally positive. Data analysis firm Nansen, in a report published with MetaStreet, predicted that "considering the DeFi income, tokenomics, and GPU rental revenue of GPU rental services, the total revenue of these services could surge by at least 30% to a maximum of 200%."
