Scaling AI infrastructure through tokenization   ‍

Unlocking new opportunities for exponential growth

As the demand for artificial intelligence skyrockets across industries, so does the need for computational infrastructure to support it. From GPUs to data centers, the AI boom has created unprecedented challenges for scaling infrastructure. Tokenization offers an innovative solution to these challenges, unlocking capital and enabling growth at a pace that traditional financing methods cannot match.

This article explores what tokenization is, how it works, and its transformative benefits for all participants in the ecosystem.

What is tokenization?

Tokenization is the process of converting real-world assets into digital tokens recorded on a blockchain. These tokens represent fractional ownership of the underlying asset, enabling investors to buy, sell, and trade portions of the asset seamlessly. Smart contracts enforce compliance and automate processes such as revenue distribution. This allows companies to access capital through a wide range of investors globally, and raise under their own terms. Simultaneously, investors gain access to participate in one of the fastest growing industries.

How it works:

1. Digitize (and fractionalize) the asset
   Infrastructure assets such as GPUs or data centers are tokenized and ownership gets recorded on a blockchain..
2. Set custom compliance rules
   Issuers set compliance rules and ownership rights, enforced automatically through smart contracts.
3. Commercialize the offering and onboard investors
   Tokens are sold to investors, who gain a share of the asset’s performance-based returns.
4. Automated distribution of payouts
   Revenue is distributed to token holders based on ownership.
   
   
   

How tokenization can boost scalability in AI Infrastructure

The global GPU market is experiencing exponential growth, fueled by the increasing adoption of AI in sectors like healthcare, finance, and gaming. It’s projected to grow from $65B in 2024 to $274B by 2029. Traditional financing methods often fall short, with lengthy processes, high capital requirements, and inflexible terms limiting scalability. Tokenization bridges this gap, providing a streamlined, scalable, and investor-friendly solution.

Benefits of tokenization:

• For AI companies: Faster and more flexible access to capital for scaling AI operations without the constraints of traditional financing. 

• For investors: Yield opportunities tied directly to asset performance in a booming market.

• For the AI Industry: Enhanced infrastructure scalability drives innovation and makes AI more accessible.

Case study: Aethir x Evergon

Aethir, a decentralized cloud computing platform, partnered with Evergon to tokenize GPUs, transforming how they fund and scale infrastructure.

Why it matters:

• For Aethir: Quick access to funding and the ability to scale infrastructure efficiently.
• For Investors: Ability to invest in AI infrastructure and receive payouts tied to asset performance. 
• For AI: The ability to meet computational demand without compromising growth.

Tokenized treasury bills drove investor adoption of tokenized assets; with a $1.5B market in 2023. By extending this model to high-yield assets like GPUs, Aethir and Evergon are creating new opportunities for innovation.

Why tokenization with Evergon is a game-changer

Tokenization not only accelerates funding but also democratizes investment opportunities. Traditional methods often exclude smaller investors due to high barriers to entry, whereas tokenization enables fractional ownership, making participation accessible to a broader audience.

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Key features of Evergon’s tokenization infrastructure: 

• Built-in compliance:: Smart contracts ensure adherence to regulatory requirements that are set by the market owner.

• Customizable solutions: Options include whitelabel marketplace that allows companies to build their custom marketplace in under 10 minutes, and custom API solutions to build tailored products to integrate within the native environment of one’s product. 

• Streamlined asset management: Streamlined processes for issuers and investors alike to distribute payouts, manage the lifecycle of the asset and its shareholders. 

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By leveraging tokenization, companies can focus on scaling faster and delivering innovative AI solutions, while investors enjoy high-yield opportunities backed by real-world assets.

Scaling AI for the future

The intersection of AI and blockchain through tokenization is a powerful enabler for growth and innovation. As shown by Aethir and Evergon’s collaboration, this model not only addresses current infrastructure challenges but also opens the door to a more scalable, efficient, and inclusive AI industry.

‍Are you ready to explore tokenization for your AI company?
Learn more about how Evergon can help you unlock capital, scale faster, and create high-yield opportunities. Request a demo here.