In a move that could revolutionize the artificial intelligence (AI) industry, a nonprofit organization funded by cryptocurrency billionaire Jed McCaleb has made a staggering purchase of $500 million worth of Nvidia advanced chips. The organization, known as Voltage Park, intends to lease computing capacity to companies for their AI projects, addressing the current shortage of AI chips.
Voltage Park CEO Eric Park expressed his belief that the current ecosystem for machine learning is flawed, stating, “It’s our belief that basically the current ecosystem for machine learning is broken.” With this hefty investment in Nvidia chips, Voltage Park aims to provide long- and short-term, low-cost AI computing services, which will alleviate the growing demand for AI chips in the market.
To establish their footprint, Voltage Park plans to deploy clusters of the Nvidia AI chips in Texas, Virginia, and Washington. While some chips are already in operation, the organization has set a target of fully deploying the 24,000 Nvidia chips by around February. This ambitious move comes in the wake of soaring demand for Nvidia’s advanced AI silicon, driven by the release of OpenAI’s ChatGPT last year, which spurred businesses to seek chips that could power their AI ambitions.
It’s worth noting that competition in the AI chip market is fierce, with Intel, Advanced Micro Devices (AMD), and various startups all vying for a piece of the pie. However, with this monumental purchase, Voltage Park has positioned itself as a major player in the market, ready to disrupt the status quo.
The man behind the nonprofit, Jed McCaleb, has a long history in the cryptocurrency world. As the founder of well-known companies such as Mt. Gox, Ripple, and Stellar, McCaleb has amassed a substantial fortune. Ripple, in particular, developed a blockchain technology that included its own cryptocurrency called XRP. McCaleb and the founders received 20 billion XRP, which reached a staggering value of nearly $80 billion at its peak.
Voltage Park, based in San Mateo, California, is a wholly owned subsidiary of McCaleb’s nonprofit called Navigation Fund. Although McCaleb is not involved in the day-to-day operations or the decision-making process of the nonprofit or Voltage Park, any profits generated by Voltage Park will be directed to Navigation.
This significant investment by Voltage Park marks a pivotal moment in the AI industry, demonstrating the growing intersection between cryptocurrency and AI. With their mission to address the flaws in the machine learning ecosystem and provide affordable AI computing services, Voltage Park is poised to make a profound impact on the future of AI. As the demand for AI chips continues to rise, it will be fascinating to see how Voltage Park’s disruptive approach shapes the landscape of the industry.
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