Market Context and Challenges

Why AI × RWA?

AI Era

The demand for GPUs has surged with the rise of AI applications, making high-performance GPUs a critical resource for training and deploying AI models. Technologies like ChatGPT exemplify AI's transformative potential, driving the Fourth Industrial Revolution and integrating AI into various sectors, thus increasing computational demands expotentially.

However, the current GPU market faces significant challenges. The high costs and frictions of acquiring and operating cutting-edge GPUs such as H100, H200, and B200s, coupled with supply chain issues leading to long delivery times, impact AI project timelines. This creates a substantial barrier for many AI innovators and companies.

Current Challenges

Lack of Investment Access

Investing in GPUs, despite their high ROI potential (30%-70%), is predominantly limited to tech giants, AI startups, and cloud infrastructure companies. Most investors face significant barriers to capitalizing on AI and compute opportunities due to the absence of liquid investment assets or derivatives for AI compute exposure. In the meantime, AI-related assets suffer from poor liquidity, making it difficult to buy or sell GPU assets without significant value loss, which further restricts flexibility and investment opportunities in the AI sector.

Indirect Exposure

Current investment options like Nvidia stocks, AI tokens, and DePIN projects offer only indirect exposure to AI. While it's still early, direct exposure to AI compute assets is on the horizon.

High Barrier to Entry

The high barrier to entry, which includes substantial capital requirements and technical expertise, significantly restricts retail and institutional investors from accessing high-yielding compute assets. This not only limits broader market participation but also stifles innovation in the AI industry. AI investors and startups are often deterred by the need for extensive operational knowledge in energy, real estate, and regulations, making it challenging to directly engage in AI infrastructure. There is a clear demand for a simple, one-click solution that can make AI and compute investments accessible to a wider audience.

The Rise of Tokenized Assets (RWA)

The market for tokenized real-world assets (RWA) is expanding, bridging physical and digital economies. There is growing investor interest in fractional ownership of tangible yielding assets, with the RWA market projected to reach multi-trillion-dollar valuations by 2030. The integration of TradFi with crypto blurs the lines between these sectors, creating new opportunities for investment and asset management.

Compute Labs leverages blockchain technology to tokenize compute, enabling fractional ownership and trading of RWA compute assets directly. This strategy democratizes access to high-performance compute and offers new investment avenues for a broader range of investors.