Solana-based DePIN io.net hits $1 billion token valuation in latest funding round batch

IO Research, developer of the Solana SOL

-8.31%
Decentralized physical infrastructure network (DePIN)-based io.net has reached a fully diluted token valuation of $1 billion in its latest funding round, two sources with direct knowledge of the matter told The Block.

IO Research announced Tuesday that it has raised $30 million in a Series A funding round led by Hack VC, with participation from Multicoin Capital, 6th Man Ventures, Solana Ventures, OKX Ventures, Aptos Labs, Delphi Digital, The Sandbox, Sebastian Borget from The Sandbox and others.

The round took place in tranches, the two sources said, adding that it is structured as a simple future equity agreement (SAFE), with token warrants at a 1:1 ratio.

Ahmad Shadid, founder and CEO of io.net, confirmed the structure of the round to The Block, adding that all investors will have a minimum one-year lock-in period for tokens.

IO Research started raising money for the round in tranches in January this year and recently closed the last batch, one of the two sources said. However, most investors joined the round earlier at a valuation of $500 million, the source added.

IO Research’s fundraising for a $1 billion token FDV is notable because io.net’s native IO token is expected to launch on April 28, The Block reported last week.

With new funding, the project looks to expand the current team of approximately 50 to 100 people by the end of the year to meet customer demand and further build out the network.

What is io.net?

Io.net, a Solana-based DePIN project focused on sourcing GPU computing power, aggregates GPU resources for artificial intelligence (AI) and machine learning (ML) companies at lower costs and faster turnaround times. Launched last November, it claims to have grown to over 25,000 GPUs and processed over 40,000 compute hours for AI and ML companies.

GPUs are “the scarcest resource in the world,” said Shayon Sengupta, investment partner at Multicoin Capital, one of io.net’s investors. He said industry analysts “still radically underestimate” how much computing power will be needed to power the next generation of AI apps. Io.net has the potential to democratize GPU computing, he added.

Io.net uses the Solana blockchain to provide transparent proof-of-compute and make every task and transaction between supplier and consumer visible in the chain. The IO token, in turn, provides a unified transaction experience for users and enables incentive mechanisms for suppliers, customers and users to participate and grow the network.

“Io.net saves customers up to 90% on their cloud AI costs,” said Ed Roman, managing partner at Hack VC, in a statement. “At a time when GPU chips are in high demand and experiencing global shortages, that is simply an incredible achievement.”