Stellar Co-Founder’s Non-Profit Invests $500M in AI Chips, Addresses Shortage
A non-profit organization tied to Stellar co-founder Jed McCaleb is making a significant investment in AI chips to tackle the ongoing shortage and offer a unique cloud rental service. Voltage Park, a startup under McCaleb’s non-profit Navigation Fund, has recently acquired 24,000 Nvidia H100 chips worth $500 million. The plan is to rent out these resources as a cloud service, enabling other companies to leverage artificial intelligence (AI) capabilities.
The rental service provided by Voltage Park will cater to both short-term and long-term access plans, aiming to deploy the chips by February 2024. This innovative model aims to address the persistent shortage of AI chips that has affected various companies, including tech giants like Microsoft and OpenAI. In fact, OpenAI has even contemplated manufacturing its own AI chips as a solution.
Unlike the traditional shortage-driven market, Voltage Park’s cloud rental approach allows smaller enterprises and developers temporary access to AI chips and computing resources. This creates a level playing field by empowering organizations without the means to invest in high-end hardware.
While Jed McCaleb, a prominent figure in the cryptocurrency space and co-founder of Stellar, Ripple, and Mt. Gox, is not directly involved with Voltage Park, the company is fully owned by his non-profit organization. All profits generated by Voltage Park will flow back to Navigation Fund.
Voltage Park is not alone in leveraging the convergence of cryptocurrencies and AI. In September, reports revealed that stablecoin firm Tether had partnered with Bitcoin mining company Northern Data to offer cloud access to AI chips.
However, cloud chip rentals have historically been a realm dominated by major tech players like Nvidia and Google Cloud. It remains uncertain whether smaller enterprises will be able to compete in this space.
Overall, Voltage Park’s sizable investment in AI chips opens up new possibilities for businesses to access cutting-edge AI technology without the burden of purchasing expensive hardware. As the shortage of AI chips persists, this rental model could spark further innovation and provide a more inclusive and accessible AI landscape.
