A Startup Is Looking to Pay 30% Yield by Tokenizing AI Infrastructure
Compute Labs and NexGen Cloud are collaborating to democratize access to the lucrative world of AI computing infrastructure. Their innovative approach involves fractionalizing ownership of high-end NVIDIA H200 GPUs, typically costing $30,000 each, into yield-bearing tokens. This initiative aims to disrupt the current centralized control of AI infrastructure, largely dominated by hyperscalers like AWS and large venture-backed firms.
The partnership centers around a “public vault” initially funded with $1 million from investors. NexGen Cloud, a European AI cloud firm that recently secured $45 million in funding, manages the initial investment through its InfraHub Compute arm. These funds are used to purchase top-of-the-range NVIDIA GPUs currently utilized for AI training and inference.
The GPUs are then tokenized and fractionalised, allowing individual investors to participate with investments as low as a few hundred dollars. Different types of tokenized GPU hardware investments are distinguished using NFTs. Investors earn a yield in USDC, projected to exceed 30% annually, based on active enterprise GPU rental agreements. Compute Labs manages the leasing of these GPUs to data center operators, ensuring a streamlined process for investors. Revenue generated, after deducting hosting and energy costs, is directly distributed to the token holders proportional to their investment.
Compute Labs employs a transparent 10% flat fee structure covering tokenization, asset management, and yield. This model, according to NexGen Cloud’s co-founder and chief strategy officer, aims to rationalize the AI market by removing speculative elements and directly linking supply, demand, and price. This project represents a significant step towards making the substantial profits generated by AI infrastructure accessible to a broader range of investors. Compute Labs is backed by notable investors including Protocol Labs, OKX Ventures, CMS Holdings, and Amber Group, highlighting the project’s potential.
