Source: Compute Labs

Introduction

In the rapidly evolving world of technology and finance, blockchain technology and artificial intelligence (AI) drive transformative innovation. Compute Labs stands at the intersection of these fields, pioneering a financial ecosystem that integrates AI and blockchain technology to deliver innovative, impactful solutions.

Compute Labs introduces innovative investment opportunities while addressing critical challenges in the AI and computing sectors by tokenizing GPU assets and developing compute derivatives. It enables AI-driven innovation and broadens access to high-performance computing resources by leveraging the unique capabilities of blockchain technology, such as transparency, decentralization, and security.

What is Compute Labs?

Source: Compute Labs

Compute Labs facilitates exposure to AI compute assets, hence financializing AI, and by converting real GPUs into digital assets, they improve liquidity and provide clear and verifiable ownership records on the blockchain. Prospecting to be a zero trillion market, Compute Labs plans to incorporate quantum edge computing and other cutting-edge computational technologies into their offerings as they leverage computing, one of their underlying assets.

Compute Labs operates on the Solana blockchain, relying on its exceptional performance, which makes it capable of handling thousands of transactions per second with minimal fees. Solana’s Proof of History consensus mechanism ensures fast and secure transaction processing.

Also, Compute Labs plans to expand to other blockchains and leverage NEAR’s advanced signature technology to enable seamless and efficient cross-chain operations.

Compute Labs Team

Founded by a team of seasoned professionals with extensive global finance and blockchain technology backgrounds, Compute Labs was created to address critical concerns in the crypto industry.

Source: Compute Labs

Albert Zhang

Albert is the founder and CEO of Compute Labs, which was created in March 2024 to realize his idea of a GPU RWA project. Previously, he was a founding team member of Delysium, a $2 billion FDV AI-agent network. Albert is a key member of rct.AI (YC19), and a Solution Architect & Product Owner of a Web Shop at Xsolla.

Nikolay Filichkin

Nikolay, the Chief Business Officer at Compute Labs is an accomplished IT executive with expertise in operations, sales, and strategic alliances. Nick has led many acquisitions, product launches, and department developments while at Xsolla with great knowledge about growing high-growth businesses and boosting revenue.

Xingfan Xia

Xingfan is Compute Labs’ co-founder and Chief Technology Officer (CTO). He has substantial knowledge in engineering, artificial intelligence, and big data from his work with large technology firms such as Apple, AWS, and Airbnb. He is passionate about AGI and eager to contribute to its vision.

Kevin Schubert

Kevin is the Chief Legal Officer of Compute Labs, a senior executive with expertise in finance, legal leadership, and company transformation. With verifiable facts from Compute Lab’s official website, Kevin has managed over $1 billion in financing, and restructurings in internet, gaming, and hospitality.

Investors

Source: Compute Labs

Compute Labs has attracted diverse investors who recognize its promising prospects and innovative use cases. Through successful fundraising rounds, the project has secured investments from notable entities, including Protocol Labs, Symbolic Capital, Ambush, Amber, Optic Capital, Builder Capital, and P2 Ventures.

Compute Labs Value Proposition

Source: Compute Labs

Compute Labs turns real GPUs into digital assets using the Compute Tokenization Protocol (CTP). Tokenization improves accessibility and liquidity by enabling fractional ownership and trading of enterprise-grade GPUs, such as H100s and B200s. It maximizes profit potential and ensures effective resource allocation by optimizing GPU use across centralized and decentralized computing networks.

Another amazing feat from Compute Labs is its introduction of the AI-Fi ecosystem which uses blockchain technology to transform the investing environment by combining cutting-edge AI infrastructure with DeFi, which provides novel financial instruments and investment products.

Compute Labs Ecosystem

Compute Vaults

Source: Compute Labs

Compute vaults convert GPU resources into GNFTs (GPU Non-Fungible Tokens), creating a decentralized mechanism to hold and profit from AI processing capacity. For instance, as listed on the official website, the H200 GNFT, which includes NVIDIA H200 SXM5 GPUs, is the first asset in this category, with more vaults in the works, including B200 GNFT and R200 GNFT.

Compute Vault is divided into four parts: Informative Dashboard, Yield Tracking, Asset Monitoring, and Transaction History.

Informative Dashboard

The Informative Dashboard is a centralized hub presenting real-time data, analytics, and insights to simplify decision-making and enhance transparency.

Yield Tracking

Compute’s Vault Yield Tracking monitors investment performance, track returns, claim yield, and analyze growth trends, ensuring optimized strategies for consistent portfolio management and financial success. This feature also serves as a data tool for potential investors to make informed decisions.

Asset Monitoring

Compute Vaults Asset Monitoring ensures the real-time oversight of physical GPU assets, ensuring visibility, security, and actionable performance insights to maximize operational efficiency and future value.

Transaction History

This gives a comprehensive record of financial activities, providing transparency, and accountability for auditing, reconciliation, and data-driven decisions.

AI-Fi Ecosystem

Source: Compute Labs

The term “AI-Fi Ecosystem” describes the financial environment surrounding computing power and artificial intelligence (AI). AI-Fi links AI and computing resources with financial tools and possibilities, enabling individuals and businesses to invest, utilize, and trade AI compute power just like the traditional finance industry does with assets like stocks and bonds.

Compute Labs verifies the AI-Fi ecosystem’s central concept by supporting compute tokenization and GPU RWA vaults and provides utility for how the $AIFI token works. The $AIFI tokens are a form of yield payments for investors, enhancing their participation in the AI and compute economy among other use cases.

Compute Tokenization Protocol (CTP)

Compute Tokenization Protocol (CTP) turns actual processing resources, like GPUs into digital assets. These assets, known as GNFT and COMPUTE tokens, may be purchased, sold, or exchanged, making it easy for users to invest in and utilize high-performance computer resources.

GNFT and COMPUTE Tokens

GNFT and COMPUTE tokens are digital assets that represent ownership of computer capacity. GNFTs are non-fungible (unique) and represent individual computing assets, while COMPUTE tokens are fungible, and facilitate transactions in the ecosystem, such as purchasing or renting computing resources.

Compute Derivatives

Compute derivatives are financial instruments whose value is derived from underlying computational assets. A GPU ETF (Exchange-Traded Fund) might be a fund that monitors the value of various GPUs (used for AI processing) in the Compute Labs ecosystem.

Compute Labs Tokenomics

The AI-Fi ecosystem is built on the $AIFI token, which facilitates transactions, governance, and staking. With a 100,000,000 $AIFI total supply, it guarantees sustained expansion and community involvement. The allocation is given as: Pre-seed (10%), Seed (10%), Reserve (15%), Team (20%), Advisors (5%), and Ecosystem Allocation (40%).

The total supply aligns with the incentives of all ecosystem players by ensuring scarcity and value appreciation over time. The team (20%) and advisors (5%) have 0% at the Token Generation Event (TGE) and 12-month cliffs, while the reserve is set aside for post-TGE requirements.

Compute Labs Roadmap

The roadmap for the project includes a bootstrapping stage in April 2024, followed by the MVP stage in Q2 2024, which includes CTP, GPU RWA Vault, and ecosystem building. Compute Labs will focus on developing a Compute Tokenization Protocol, GNFT smart contract, and integrating DeFi as part of its roadmap development. The launch stage will involve the H100 GPU RWA Vault private sale, followed by the B200 GPU RWA Vault public sale and GNFT staking in Q4 2024.

The project will also focus on AI company partnerships, IDC partner and channel sales expansion, legal logistics, and AI-Fi ecosystem building. Compute Labs will continue progressing beyond the Q1 2025 with the GB200 GPU RWA Vault public sale.

Compute Labs Use Cases

Source: Compute Labs

Tokenizing GPUs for Scalable AI Investments

Compute Labs provides investors with the GPU RWA Vault, transforming physical GPUs into digital assets. This democratizes access to high-performance computing investments, offering diverse revenue streams, including rental income from AI companies and potential airdrops from popular projects, enhancing liquidity and market exposure.

Monetize Compute Power and Accelerate AI Innovation

Compute Labs offers AI companies a cost-effective solution by allowing them to launch their own GPU RWA Vault through CTP. This model will enable them to share revenue generated from acquired compute, allowing them to focus on core research and development activities. This will accelerate their development cycles and quickly bring innovative AI solutions to the market.

Maximizing AI Compute Revenue with GPU Hosting & RWA Vaults

AI Data Center (AIDC) Operating Partners can collaborate with Compute Labs to host GPUs for GNFTs, allowing them to meet the growing demand for AI compute resources and generate additional revenue without upfront GPU investments. They can also use CTP to launch their own GPU RWA Vault, reducing CapEx and enabling lower capital costs. This partnership model enhances AIDCs’ value proposition and supports the AI ecosystem by providing reliable and scalable infrastructure for AI development and infra-deployment.

How Compute Labs is Bridging the Gap in AI and RWA Sector

Source: Compute Labs

The demand for GPUs has increased due to AI applications, making them crucial for training and deploying models. Technologies like ChatGPT drive today’s revolution, increasing computational demands and birthing the need for more advanced and easily accessible models for wider deployment. This market gap is part of Compute Labs’ mission statement. However, the GPU market still faces high costs, frictions, and supply chain issues, impacting AI project timelines and creating a significant barrier for AI innovators and companies.

Also, the demand for tokenized real-world assets (RWA) is rapidly expanding, bridging physical and digital economies. The market is projected to reach multi-trillion-dollar valuations by 2030 and this is where Compute Labs would be needed. Compute Labs uses blockchain technology to tokenize compute, directly allowing fractional ownership and trading of RWA assets. This strategy democratizes access to high-performance compute and offers new investment opportunities for a wider range of investors.

Challenges within the AI Market and How Compute Labs Solve It

Source: Compute Labs

Despite the high ROI potential of GPUs (30-70%), investment in AI and compute opportunities is primarily limited to tech giants, AI startups, and cloud infrastructure companies. The absence of liquid investment assets and liquidity further restricts investment flexibility and opportunities in the AI sector. Current investment options like Nvidia stocks, AI tokens, and DePIN projects offer only indirect exposure to AI, but direct exposure to AI compute assets is on the horizon.

The high barrier to entry, including substantial capital requirements and technical expertise, restrict retail and institutional investors from accessing high-yielding compute assets, limiting market participation and stifling innovation in the AI industry. There is a clear demand for a simple, one-click solution that can make AI and compute investments accessible to a wider audience which is what Compute Labs is set to do.

How Secure is Compute Labs Infrastructure?

Data Encryption

Compute Labs uses industry-standard protocols like TLS for end-to-end encryption of all data transmitted between users and the platform. In contrast, sensitive data stored on the servers are encrypted using AES-256 for security in case of a breach.

Security Audits and Penetration Testing

Regular security audits and penetration testing are conducted to identify and address potential vulnerabilities, while the platform undergoes periodic testing to simulate real-world attacks and ensure robust defenses.

Smart Contract Security

Compute Labs implements formal verification and bug bounty programs to ensure the security and correctness of its smart contracts, thereby incentivizing security researchers to identify and report vulnerabilities.

Open Source Commitment

Compute Labs is committed to transparency, collaboration, and innovation through open-source initiatives. They have made significant portions of their codebase available to the public, encouraging contributions from developers, researchers, and enthusiasts worldwide. Their open-source projects include core smart contracts and GPU management tools. By embracing open source, they enhance platform security, accelerate innovation, and ensure solutions remain cutting-edge, transparent, and aligned with industry best practices.

Is Compute Labs a Good Investment?

Looking at the entire framework of what Compute Labs are up to and their plan to redesign and redefine accessibility to development infrastructure within the blockchain space, AI, AGI, RWA, and other future tech endeavors, investments can yield good returns based on an active market with demands. On the other hand, due to how volatile the financial market is and the uncertainty of its characteristics, investors should make sound analysis including feasibility and viability studies before making investments.

Highlights

Source: Compute Labs

One of the key highlights of Compute Labs is the spotlight it has gathered in terms of investment as it raised $3 million in a recent pre-seed funding round. The funding round was led by Protocol Labs, the company behind Filecoin, and other investors including Blockchain Coinvestors, CMS Holdings, HashKey Capital, Amber Group, and P2 Ventures.

Compute Labs began raising funds in March 2024 and closed the round in April 2024. The round was structured as a simple agreement for future tokens, bringing its fully diluted token valuation to $30 million.

Conclusion

Compute Labs is poised to transform AI investments by democratizing access to advanced artificial intelligent infrastructure, enabling direct exposure, creating compute derivatives, and fostering a decentralized compute market. Its solutions, including Compute Tokenization Protocol (CPT), GPU RWA Vault, and the AI-Fi ecosystem, provide transparent and secure investment opportunities, reshaping the future of AI investments.