Why is Aethir considered the flagship project for Web3 GPU as a Service (GPUaaS)? Let’s take a closer look.
Decentralized computing is one of the most powerful use cases in the global Web3 industry. In 2023, the DePIN industry witnessed explosive growth, with over 755 projects and a market capitalization exceeding $32 billion. The industry’s utilization rate is between 40-70%, generating an annual revenue of $27.5 million.
In the current GPU as a Service market, Aethir dominates with the highest number of GPUs, A100s, and H100s, as well as the lowest hourly cost for A100s. They possess rendering equipment worth $24 million in 25 locations across 13 countries. It should not be underestimated.
Aethir leverages a diverse network of GPU suppliers, including enterprises, data centers, miners, and individual suppliers, to maximize hardware utilization and ensure cost-effectiveness. For example, the hourly cost of A100 on Aethir is $0.30, while Amazon’s AWS charges $41 per hour.
On the demand side, Aethir targets the enterprise segment that requires a large number of GPU resources, primarily in the gaming and AI fields. Besides the decentralized nature and cost-effectiveness (clear advantages of Web3 GPUaaS over Web2), what sets Aethir apart?
Diverse network access: More adaptable and efficient network management compared to traditional cloud rendering services.
Transparent container evaluation framework and overall quality advantages of the provided services.
Enhanced low-latency technology: Predictive algorithms, advanced video capture, region of interest coding, super-resolution technology, and customizable video rendering adjustments.
Diverse hardware access.
Hardware acceleration achieved through Aethir Edge.
With these advantages, Aethir achieved transactions worth over $20 million in the first quarter of 2024, including contracts with the world’s largest gaming companies and Well-Link Tech. Other partners include NVIDIA, Seedify, Magic Eden, and more.
Aethir’s business model includes charging a 20% service fee (in ATH tokens) on transactions between customers and suppliers. Additionally, 50% of the total ATH token supply is distributed as incentives to the node operators and service providers.
Node operators’ income comes from the following sources:
Service fees (80% of which belongs to the node operators).
Token incentives for completed rendering work proofs.
Token incentives for proof of capacity (availability of computational resources).
In my opinion, Aethir is well-positioned to capitalize on the growing demand for decentralized computing. By expanding its GPU infrastructure and establishing key partnerships, Aethir aims to meet the high demand for processing power. According to information provided by CoinMarketCap, they plan to achieve a target of over 50,000 H100 GPUs in 2024.