DePIN GPU networks versus a $79B quarterly cloud market
Quote359 words
Cites Messari's $20B DePIN market and Q2 2024 cloud spend of $79B (up 22% YoY), with AWS at 32%, Azure 23% and Google Cloud 12%. Argues GPU DePINs like io.net and Aethir can serve startups priced out of centralized GPUs.
Key claims
Q2 2024 enterprise cloud spend $79B, up 22% YoY
AWS 32%, Azure 23%, Google Cloud 12% share
DePIN is a $20B market segment
DePIN is one of the major narratives of the 2024 cycle.
The below research report by @MessariCrypto impressively highlights investor interest & how DePIN quickly grew into a $20B market segment.
I'm especially bullish on decentralized GPU networks like @AethirCloud (GPU-as-a-Service) or @ionet (GPU aggregation) that make high-performance cloud compute accessible to builders in the AI/ML space.
Why?
Enterprise spending on cloud infrastructure services during the second quarter of 2024 alone reached $79 billion.
This represents a $14.1 billion, or 22% increase YoY compared to Q2 2023.
Fueled by an AI industry in hyper-growth and increasing demand for computing power from the gaming sector, this market is set to expand massively in the years to come.
However, GPU resources are scarce and expensive. Supply is limited and mostly controlled by the large cloud providers that dominate the Q2 revenues.
More specifically (see visual below):
✦ @awscloud (32%)
✦ @Azure (23%)
✦ @googlecloud (12%)
Smaller companies and startups that want to build with AI are often priced out of using these solutions and have to rely on older, less powerful GPU resources they can get on the market or limiting the amount of compute they can afford.
Decentralized GPU networks could come to the rescue here, providing builders a cost-effective, affordable and easily accessible way to train AI models or run inference.
If projects like @ionet manage to eat into the ever-growing cake of revenue in this market and find adoption beyond our crypto-bubble, the potential is almost unlimited.
While there is hurdles to overcome in order to gain large-scale adoption beyond the crypto space, I do believe there is an opportunity here.
@ionet for example acts as an aggregation layer that sources GPUs from all sorts of places.
This includes specialized, decentralized GPU networks like @AethirCloud or @rendernetwork, but also end user hardware or data centers.
Looking at the competitive pricing, @ionet's services could serve an underserved market of companies priced out of the traditional GPU, or more broadly, cloud compute market.
Feel like many are still sleeping on assets like $IO or $ATH.
NFA but DYOR. 👀
QUOTING @BlockworksData
DePIN continues to grow 🌐 With fundraising volume up 296% year over year, the total market cap grew 400% to $20 billion. It’s Time for a #DePIN Sector Update 🧵⬇️
DePIN continues to grow 🌐 With fundraising volume up 296% year over year, the total market cap grew 400% to $20 billion. It’s Time for a #DePIN Sector Update 🧵⬇️
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What came next · since 12 Aug 2024
Show how the 2 covered assets moved
This data piece reports the numbers without making a call on the token, so price moves since publication are shown as market context.
Since then
Zero has written 37 more pieces on io.net and Aethir and $IO and $ATH since this one.
- io.net IDE tokenomics: #1 revenue DePIN at 5.3x MC/ARRBullish call on $IO
- DePIN compute needs enterprise reliability, not just cheaper GPUs than AWSOn Aethir
- DeAI as crypto's endgame: compute, agents and autonomous economiesOn io.net
- Why decentralized compute solves the startup GPU cost squeezeOn io.net
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