Exabits, a compute-base layer platform transforming high-end GPU (graphic processing units) clusters into accessible investment assets, announced it closed $15 million in a seed funding round. This funding round was led by Hack VC and several other investors, following a previous round led by Portal Ventures.
Created by a team of experts with extensive knowledge in the computing and AI sector, the funding supports the development efforts of a computing financialization product, providing investors with the unique opportunity to invest in the future of AI.
Since launching, Exabits has been incubated by several prestigious institutions, such as the Stanford Blockchain Accelerator, Berkeley Xcelerator, and is the first and only blockchain project incubated by the Harvard Innovation Labs. More recently, Exabits announced a collaboration with Seoul National University, providing computing and processing power to the Vehicle Intelligence Lab led by Professor Seung-Woo Seo, to support the research of AI-based autonomous driving.
Computing power abundance is the foundation of the recent AI boom that has significantly impacted nearly every industry. However, investing in computing resources amid the AI era comes with several challenges, mostly due to high capital costs upwards of tens of millions of dollars each, technical complexities, and supply constraints. And investing in computing is not just about purchasing the software; it requires a deep understanding of how to deploy, optimize, and manage those resources, requiring technical experience that most investors lack.
As GPUs become scarce due to manufacturing limitations and large-scale acquisitions by tech giants, Exabits provides investors with a new way to gain GPU equity by transforming high-value compute assets into fractionalized assets through tokens. Exabit's model offers direct exposure to GPU computing assets, creating a liquid market that enhances decentralized ownership, generates revenue through enterprise-grade services, and rewards token holders. By optimizing technology and improving operations to align with market demands, Exabits enhances the overall value of these assets.
After closing its $15 million funding round, Exabits plans to strategically allocate these funds towards research and development, brand creation, technology improvement, and operational excellence. Due to its proprietary software and hardware, Exabits offers a trusted base layer provider for decentralized marketplaces and Web 2.0 companies, maximizing compute output to generate user value. In the past year, Exabit's revenue has surged, growing at an average of 300% each quarter. This highlights its value proposition and strong market demand, resulting in a total of $10 million in annual recurring revenue (ARR).
KEY QUOTES:
"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."
- Dr. Hoansoo Lee, Co-Founder of Exabits
"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."
- Ed Roman, Co-founder and Managing Partner of Hack VC
"Exabits has distinguished itself among 30+ GPU projects through its exceptional dominance on the supply side. Accessing and securing GPU supply is crucial for igniting the flywheel effect and bridging the supply-side moat to the demand side. Exabits excels in this area, thanks to its founders' decades of experience in the cloud computing space. We are extremely proud to be day-one backers of this project."
- Catrina Wang, General Partner at Portal Ventures