For retail investors seeking opportunities in the cloud computing market, it may seem like they have missed the boat. The “Big Three” in the public cloud market – Amazon Web Services, Microsoft Corp., and Google Cloud – are already established as the world’s richest publicly traded companies, valued in the millions. These companies maintain their dominance by investing in potential upstarts long before they go public.
A prime example of this is seen in the AI industry, where startups like OpenAI and Anthropic have emerged as leaders with powerful AI models. Microsoft famously invested $10 billion in OpenAI shortly after the debut of ChatGPT. Anthropic, on the other hand, is backed by high-profile venture capital firms, including Google’s VC arm.
Unfortunately, retail investors are unable to participate in these opportunities. Only accredited investors, owned by extremely high net-worth individuals, can invest in startups during their early stages. However, with the rise of decentralized cloud computing, retail investors may finally have a chance to invest in this lucrative segment of the tech industry.
Decentralized cloud computing integrates blockchain into cloud computing networks, which essentially live on cloud infrastructure. Blockchain networks are decentralized and made up of independent yet interconnected nodes, scattered worldwide. Decentralized networks aggregate storage and computing power, with nodes working together to perform tasks. Retail investors can enter these networks by using digital tokens as payment.
One of the leading decentralized cloud computing projects is Cudos Network, which aims to create artificial general intelligence systems. Cudos tokenizes access to computing power and storage resources needed for AGI workloads. Participants can join the network by linking their computers and donating resources, earning the platform’s native token, CUDOS.
Another decentralized cloud service is Io.net, a decentralized GPU network supporting AI workloads. It operates on the Solana blockchain, known for faster and lower-cost transactions. Render Network, on the other hand, provides a global rendering system for immersive computing workloads.
Decentralized networks offer advantages such as lower costs, greater privacy, and more reliability. By removing the middleman, overhead costs are reduced and distributed among network nodes. Renowned computer scientist Ben Goertzel believes there will be a high demand for decentralized networks in the future, as startups cannot afford the premiums associated with major cloud providers.
Tokenization of cloud resources allows for easier access and liquidity for customers and investors. It enables fractional ownership, breaking down computing power into affordable chunks. For example, DcentAI offers a blockchain-based GPU cloud where fractions of cloud-based resources can be bought and sold.
Tokenized data centers provide DeFi investors access to cloud-based GPUs, which are expected to grow significantly. It also offers an alternative funding model for cloud startups.
Despite the potential, data center tokenization faces challenges. Regulations surrounding digital assets are unclear, leading to uncertainty and lack of acceptance in financial markets. However, the potential for tokenization in various markets, including AI, makes it an enticing opportunity. Retail investors can invest in the infrastructure supporting the AI-driven future through tokenization.