Bullish backs USD.AI with $100 million in financing to drive GPU-backed loans
Bullish has provided $100 million in financing to USD.AI to support loans secured by graphics processing units (GPUs). This initiative aims to bridge the gap between AI infrastructure financing and decentralized finance liquidity.
Why it matters
This represents a novel financial model where physical AI hardware is used as collateral for on-chain credit, highlighting the growing intersection of AI and crypto.
The financing will provide USD.AI with liquidity to make loans secured by graphics processing units (GPUs). These specialized electronic chips underpin the AI industry by processing vast amounts of data in parallel.
The arrangement represents an intersection between two investment themes: the increasing demand for private credit to finance AI infrastructure and efforts to tokenize real-world assets to access crypto’s pools of liquidity.
USD.AI is a stablecoin protocol designed to connect AI infrastructure financing with onchain capital . As of this writing, crypto assets worth over $225 million were locked in the protocol.
“Compute is becoming a credit market in its own right,” David Choi, CEO of USD.AI developer Permian Labs, said in Friday’s announcement. Bullish's facility will allow USD.AI to “finance more of the AI buildout while creating deeper, more transparent markets for compute-backed credit,” he added.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in