About GAIB Part 2 — Market & Value

1. The Vast Economic Potential of Compute Assets Remains Untapped

“Compute is the currency of the future.” — Sam Altman

1.1 Background:

The explosive growth of artificial intelligence (AI) has brought computing power to the forefront as one of the most critical and valuable resources of the 21st century. From training advanced AI models to powering real-time data processing in emerging technologies like autonomous vehicles, augmented reality, and blockchain, computing power underpins nearly every facet of technological advancement, and captures the most value in the AI supply chain. At the heart of this revolution are enterprise-grade GPUs, particularly high-end models like NVIDIA’s H100 and H200, which are specifically designed for intensive workloads in AI and cloud infrastructure.

However, the rapid rise in demand has outpaced supply, creating a scarcity that has elevated high-end GPUs to the status of a new commodity — one as critical and valuable as gold or oil in traditional markets. Let’s take gold as an example: It evolved from a physical commodity into a globally traded asset with futures and ETFs to ensure liquidity, and enhanced its financial utility. GPUs represent a new class of commodity in the AI era. These compute assets, critical for powering AI and cloud infrastructures, demand similar financial instruments to unlock their economic potential. However, the absence of a structured market to realize their economic value has left this trillion-dollar opportunity largely untapped.

1.2 Current Challenges in Compute Economy

a. Absence of a Liquid Compute Asset Market

Unlike traditional commodities, compute assets lack a liquid, transparent market. Compute assets such as High-end GPUs are in extreme demand but cannot be traded or leveraged effectively, limiting their economic value proposition.

b. Capital Barriers for Cloud and Data Centers

Cloud and data centers, which house and deploy compute assets, are critical to realizing computing power. However, their operations are capital-intensive, requiring significant upfront investment for infrastructure, high-performance GPUs, and ongoing maintenance. With GPUs like the NVIDIA H100 priced at over $30,000 per unit, financing remains a major obstacle.

c. Limited Investment Opportunities

For individual and institutional investors, the options to participate in the compute economy are relatively limited. Beyond purchasing stocks of manufacturers like NVIDIA, there are few avenues to directly invest in the compute assets driving the AI revolution.

d. Crypto’s Need for Real-Yield Assets

The cryptocurrency sector faces a significant challenge due to the lack of real-yield assets. Much of the high yield offered in the crypto space is artificially sustained by token inflation, making it unsustainable in the long term. This lack of stable, real-world assets hampers the sector’s ability to attract long-term capital and limits its alignment with the broader financial ecosystem.

1.3 GAIB: Transforming Compute Assets into Tradable Financial Products

GAIB addresses these challenges by introducing a groundbreaking solution: the tokenization of GPU-backed loans or future cash flows generated by GPUs. This approach unlocks the financial potential of compute assets while addressing liquidity and investment challenges. The figure below showcases the AI economy flywheel and GAIB’s Value-adds:

Besides, the key to GAIB’s strategy is its focus on high-end GPUs like NVIDIA’s H100 and H200. These GPUs stand apart from other models due to their:

a. Critical Role in AI and Cloud Computing: They are indispensable for training large language models and supporting the most demanding computational workloads.

b. High Market Demand and Supply Constraints: With limited manufacturing capacity and growing demand from AI, blockchain, and big data sectors, these GPUs maintain strong value over time.

c. Resilience Against Depreciation: Unlike consumer-grade GPUs, these enterprise-grade models have a longer operational lifespan, making them ideal for collateralization.

Through tokenizing GPUs, GAIB transforms them into tradable assets. This approach brings transparency, liquidity, and accessibility to the compute market, therefore breaking down the barriers for all stakeholders

1.4 GAIB: At the Crossroads of AI, RWA, and DeFi

GAIB is at the intersection of growth in three transformative markets: AI, Real-World Asset (RWA), and Decentralized Finance (DeFi). The potential total addressable market (TAM) for GAIB is immense: the global GDP by AI is projected to grow by $7 trillion in 10 years, RWAs is estimated to reach a $30 trillion market by 2030, and DeFi is set to expand to $450 billion by 2030. By bridging these ecosystems, GAIB not only unlocks the financial potential of compute assets but also positions itself as a core enabler in this trillion-dollar convergence. This strategic positioning underscores GAIB’s opportunity to drive exponential growth while reshaping the future of AI-driven finance.

2. GAIB: Bridging the Capital Demand and Supply for Compute

Connecting Data Centers and Investors

To address the growing capital demands of cloud and data centers, GAIB tokenizes either loans backed by GPUs or cash-flows of GPUs. By handling the tokenization process, GAIB enables data centers to issue ERC-20 tokens to raise funds. This innovative approach not only bridges the funding gap for data centers but also offers investors a unique opportunity to access a new asset class. Here’s what the benefits are:

2.1 How GAIB Benefits Data Centers

The global demand for data center capacity is growing at an unprecedented pace. McKinsey projects an annual increase of 19% to 22% between 2023 and 2030, with advanced AI workloads seeing an even higher compound annual growth rate of 33%.

While large-scale cloud services providers (CSPs), such as tech giants Google, Microsoft, and AWS utilize diverse funding mechanisms such as equity markets, corporate bonds, and credit lines to drive their expansion, the rest often remain underserved. They face significant challenges accessing capital efficiently as traditional financing methods come with limitations — such as lengthy approval processes and rigid requirements associated with bank loans, or high costs imposed by private lenders. These constraints hinder their ability to invest in essential infrastructure upgrades or acquire high end GPUs, making it difficult to scale operations and meet the growing demand for computational power.

GAIB addresses these challenges by unlocking a new financing pathway for cloud and data centers. By leveraging its innovative tokenization platform, GAIB enables data centers to secure capital more efficiently and flexibly. Here are the key benefits:

a. Faster Access to Capital

GAIB eliminates the delays and restrictions associated with traditional bank loans or private lending by offering a streamlined financing solution powered by blockchain infrastructure. This enables data centers to secure the capital they need swiftly, allowing them to respond promptly to evolving market demands and sustain their competitive position in the rapidly growing compute market.

b. Scalable Funding for Growth

By collateralizing GPUs with GAIB to borrow funds, data centers can unlock the intrinsic value of their existing assets, creating a sustainable and scalable source of funding. This approach supports critical growth initiatives, including investments in high-performance GPUs or infrastructure upgrades, empowering data centers to expand operations efficiently.

c. Lower Financing Costs

Traditional financial methods often impose high interest rates and rigid repayment schedules, placing a heavy burden on data centers. GAIB’s platform provides cost-effective and flexible financing options, significantly reducing capital costs and improving overall financial sustainability, enabling operators to focus on long-term growth.

d. Broader Access to a Global Investor Base

Through the tokenization process, GAIB connects data centers with a diverse pool of global investors eager to capitalize on the booming compute industry. This democratic and permissionless model not only diversifies funding sources but also enhances financial resilience, providing data centers with greater stability to weather market fluctuations and seize emerging opportunities.

2.2 How GAIB Creates Value for Investors

Goldman Sachs forecasts a 9.6% CAGR of load from data centers from 2024 to 2030, which indicates the continued capital demand from data centers. To bridge the capital gap, GAIB offers investors access to a new and emerging asset class. Specifically, GAIB will launch the asset in the form of a yield-bearing stablecoin that provides investors with multiple opportunities to engage in the burgeoning AI computer economy. By compute tokenization and financialization, as well as building liquid secondary markets on top, GAIB offers:

a. Direct Exposure to AI Compute:

Investors can directly tap into the economic value of high-performance GPUs, such as NVIDIA’s H100 and H200, without the need to invest in NVIDIA stocks or purchase hardware. This provides an innovative pathway for those seeking exposure to the booming AI infrastructure market, decoupling traditional stock investments from GPU-centric value creation.

b. Passive Yield Generation:

GAIB’s stablecoin offers a yield-bearing mechanism, enabling investors to generate passive income simply by holding the asset. This feature makes it a compelling choice for long-term value retention, particularly for those looking to balance growth potential with stability in their portfolios.

c. Base Currency for Trading:

Serving as a versatile base currency, GAIB’s stablecoin facilitates seamless trading across diverse DeFi protocols. This flexibility enhances its utility, making it a preferred choice for traders and DeFi enthusiasts looking to streamline transactions within the ecosystem.

d. Lending Opportunities for Additional Yield:

GAIB’s integration within the DeFi ecosystem opens up lending opportunities, allowing investors to loan their stablecoins to others. This not only helps to maximize returns through additional yield but also promotes liquidity within the network, benefiting the broader DeFi community.

e. Hedging and Speculation:

GAIB caters to a wide range of financial strategies, from risk mitigation to yield speculation. With GAIB’s integrations with various yield trading and yield optimization protocols such as Pendle, users can leverage the stablecoin to hedge against market volatility or to speculate on returns, offering flexibility that suits diverse risk-reward preferences across the DeFi landscape.

GAIB establishes a foundational yield-bearing asset class. This creates endless possibilities for use cases and derivatives, meeting the varied needs of all types of investors — from risk-averse users seeking stable returns to those pursuing higher-risk, high-reward strategies. Through GAIB, investors can diversify into the high-demand GPU-backed asset class, benefitting from long-term stability, wide use cases, and a favorable risk-return profile.

3. GAIB’s Role in Transforming Compute Assets

3.1 Tokenization of GPUs & Their Cash Flows

GAIB introduces a novel asset class by tokenizing GPUs. By leveraging these high-value, long-term viable GPUs as collateral, GAIB’s tokenization solution offers liquidity and tradability to compute assets. This innovative approach lays the foundation for a high-yield, income-generating financial product designed to meet the needs of the AI-driven economy.

3.2 Unlocking Access for All

GAIB creates and enables a market for tokenized compute assets, empowering data centers to unlock new financing opportunities and meet the growing demand for compute, while giving investors access to a new yield bearing asset class. By integrating with other DeFi protocols, these tokenized assets can support a wide range of use cases and derivatives, catering to users with all kinds of risk reward profiles.

3.3 Pioneering AI-Era Yield Assets

GAIB’s mission is to create and maximize the value of compute-backed assets, ensuring they serve as high-yield, income-generating instruments. By aligning AI compute with financial innovation, GAIB future-proofs the value of these assets, standing at the forefront of a new era where capital efficiency and accessibility fuel technological progress.

4. Conclusion

In the future, compute will be one of the most valuable and sought-after asset class. However, the lack of a tradable market for compute assets has created a bottleneck in its monetization.

GAIB offers a transformative solution by tokenizing GPU-backed loans or the future cash flow of GPU, enabling data centers to secure liquidity and investors to access a unique and high-demand asset class. By creating a market for trading compute assets, GAIB bridges the gap between supply and demand, democratizing access to the AI economy’s most critical resource. By positioning compute as a new type of commodity and creating financial infrastructure for it, GAIB gives everyone access to the dividends of the AI era.

About GAIB

GAIB is the first economic layer for AI compute, creating a new type of yield-bearing asset backed by real AI demand. By tokenizing enterprise-grade GPUs and their yields, GAIB establishes a decentralized and liquid market for GPU financing, addressing the growing need for high-performance computing while giving investors direct exposure to GPU-backed assets.

GAIB’s platform supports various DeFi use cases, including GPU-backed stablecoins, lending, borrowing, options, futures, and structured products.

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