The Rise of GPU Investing: Owning the Backbone of AI

AI Marketing Podcast Schedule (Nikolay Filichkin) with Mark E Fidelman

Quick recap
Mark and Nick discussed the topic of Gpu alternative investments, with Nick explaining the process of funding deals and the financial aspects of investing in GPUs. They also discussed the progress of their website, the regulatory aspects of their business, and the potential of considering Dubai for their business due to its growth in tokenization and AI. The conversation concluded with an agreement to reconnect in about 90 days to assess the progress of their business.

Summary
Gpu Alternative Investments in AI Industry

Mark and Nick discussed the topic of Gpu alternative investments. Nick, co-founder and chief business officer at Compute Labs, explained that their business helps data center operators scale their business and allows investors to invest in Gpus or compute products as a new emerging asset class. He emphasized the importance of this investment due to the massive growth of the AI industry, and the lack of direct access to the growth of the compute space. Nick also mentioned that they provide market education and use a platform to present specific Gpu offers.

GPU Funding Process Explained
Nick discussed the process of funding deals, including the capital expenses, operational expenses, and projected revenue. He explained that investors receive a share in an SPV that holds rights to the GPUs, which is represented by an NFT. Mark questioned the type of GPU and the payout process, to which Nick clarified that the investor receives the specific GPU they're interested in and the payout is in USDC. Nick also addressed the GPU provider's benefits, stating they receive capital to scale their business and manage net revenue. Mark inquired about purchasing multiple GPUs, to which Nick confirmed that each GPU would be represented by an NFT.

GPU Investment Financials and Returns
Nick and Mark discussed the financial aspects of investing in GPUs. Nick clarified that they target a minimum 20% internal rate of return (IRR) for their projections, and they manage the assets, including hardware issues, upgrades, and liquidation. Mark inquired about the average return on investment and the role of the investor in the process, to which Nick explained that the investor collects a monthly dividend, but the cash flow and dividend depend on utilization and contracted revenue. They also discussed the minimum investment amount, with Nick stating that there is no minimum at this time, but it may vary for certain deals.

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