Exabits, a compute-base layer platform transforming high-end GPU (graphic processing units) clusters into accessible investment assets, closes $15 million in a seed funding round. The funding round was led by Hack VC, along with several other investors, following a previous round led by Portal Ventures.
Developed by a team of experts with extensive knowledge in the compute and AI sector, the funding supports the development efforts of a compute financialization product, providing investors with the opportunity to invest in the future of AI.
Since its launch, Exabits has been incubated by several institutions, including the Stanford Blockchain Accelerator, Berkeley Xcelerator, and is the first and only blockchain project incubated by the Harvard Innovation Labs. Most recently, Exabits announced its 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.
An abundance of compute power 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, primarily due to high capital costs upwards of tens of millions of dollars each, technical complexities, and supply constraints. 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 increasingly scarce due to manufacturing limitations and large-scale acquisitions by tech giants, Exabits offers investors a new model to gain GPU equity by transforming high-value compute assets into fractionalized assets through tokens. Exabit’s model offers direct exposure to GPU compute 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.
Following the closure of its $15 million funding round, Exabits plans to strategically allocate these funds towards research and development, brand creation, technology improvement, and operational excellence. Thanks to its proprietary software and hardware, Exabits provides a trusted base layer provider for decentralized marketplaces and Web 2.0 companies, maximizing compute output to generate user value. Over the past 12 months, Exabit’s revenue has surged, growing at an average of 300% each quarter, which highlights its value proposition and strong market demand, resulting in a total of $10 million in ARR.
“At Exabits, our goal is to redefine the AI compute landscape by positioning compute resources as valuable financial assets,” says Dr. Hoansoo Lee, Co-Founder of Exabits. “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.”
“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,” says Ed Roman, Co-founder and Managing Partner of Hack VC.