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

IO Research, developer of the Solana SOL -6.23% -based decentralized physical infrastructure network (DePIN) io.net, has reached a fully diluted token valuation of $1 billion in its latest funding round batch, two sources with direct knowledge of the matter told The Block.

IO Research announced on 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 of The Sandbox and others.

The round occurred in tranches, the two sources said, adding that it is structured as a simple agreement for future equity (SAFE), with token warrants in 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 have a minimum one-year lock-in period for tokens.

IO Research began raising funds for the round in tranches in January of this year and closed the final batch recently, one of the two sources said. Most investors, however, joined the round earlier at a valuation of $500 million, the source added.

IO Research's fundraise at a $1 billion token FDV is notable since io.net's native IO token is expected to launch April 28, The Block reported last week.

With fresh funding in place, the project looks to grow its current team of around 50 to 100 people by the end of the year to meet customer demand and continue building 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 lead times. It was launched last November and 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 commodity in the world," according to Shayon Sengupta, investment partner at Multicoin Capital, one of io.net's investors. He said industry analysts are "still radically underestimating" how much computing power will be needed to fuel 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 job and transaction between supplier and consumer visible on-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," Ed Roman, managing partner at Hack VC, said in a statement. "In an age where GPU chips are in high demand with global shortages, that is simply an incredible accomplishment."