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Quick take:
The financing was arranged by Permian Labs and will be distributed via USD.AI, according to the report by CoinDesk.
USD.AI is the blockchain-based credit protocol that connects crypto liquidity to real-world infrastructure.
The company plans to use the funds to scale its operation amid rising demand for commuting power.
QumulusAI has secured a $500 million credit facility to scale its GPU-powered cloud infrastructure operations. The company provides the computing power required to run artificial intelligence applications.
According to the announcement on Thursday, the blockchain-backed facility was arranged by Permian Labs and distributed via USD.AI, the blockchain-based credit protocol that connects crypto liquidity to real-world infrastructure.
The facility allows QumulusAi to borrow stablecoins up to 70% of its approved GPU deployments, CoinDesk reported. According to the announcement, this provides the company with faster access to capital than traditional options.
Commenting on the announcement, QumulusAI CEO Mike Maniscalco said in a statement: “By leveraging Permian Labs’ tokenization framework, we can scale faster and more flexibly – meeting the surge in AI compute demand without the constraints of legacy financing.”
The announcement comes amid rising demand for computing power, driven by the emergence of generative AI apps, and the power required for training and running large AI models.
Tech giants like Google, Meta, and OpenAI continue to dominate the cloud infrastructure industry, and new blockchain-based providers are emerging fast, providing potentially cheaper alternatives through decentralization.
QumulusAI’s blockchain-backed facility is made possible by Permian Labs’ tokenisation mechanism, which turns GPUs into warehouse receipt tokens, GWRTs, which can be used as collateral on-chain.
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