EMC, Recognized as Layer 1 for AI and Decentralized GPU

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 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 in need of computing power.

EdgeMatrixChain (EMC) is also one of the DePIN projects that provide GPU rental services. However, it is distinguished from other GPU rental DePINs by its ability to offer DeFi and creative platforms using Layer 1 blockchain. Previously, in August, EMC secured a total investment 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 Needed?

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 critical issue in the AI industry.

Since the emergence of Open AI's Chat GPT, there has been a surge in AI development, leading to a skyrocketing demand for GPUs, while supply remains insufficient. As a result, high-performance GPUs used in AI development are currently priced at the level of a car. While big tech companies like Meta and Microsoft have no significant issues purchasing expensive GPUs, startups and individual developers face financial challenges.

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%, respectively, compared to the same period last year, reaching $33.16 billion and $19.39 billion. These figures significantly exceeded 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 "with the growing interest in AI, the cost of computing resources like GPUs has increased," and "decentralized GPU DePINs have emerged as a cost-effective alternative."

There is also hidden demand for decentralized GPUs from Chinese AI developers 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 outlet 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 previously mentioned, EMC is a project that leases the computing power of GPUs. To achieve this, 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. EMC previously participated in the 'Singapore Token 2049' conference and showcased a live demo of SuperPOD.

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

Additionally, EMC assists in building networks suitable for AI usage. 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 utilizing GPUs. Currently, anyone can purchase the computing power of Nvidia H100 GPUs in token form within EMC, and by staking them through EMC's DeFi, they can earn an additional income of approximately 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. Approximately 30 million EMC tokens are currently in circulation, accounting for 3% of the total supply (about 1 billion). The market capitalization is around $2.37 million.

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