Paradigm Drops $50M on Solana-Powered Decentralized AI Startup Nous

Nous Research, a startup developing a decentralized platform for training artificial intelligence models, has secured $50 million in a Series A funding round led by prominent crypto venture capital firm Paradigm. Fortune reported the investment on Friday, noting that the funding values Nous Research at a $1 billion token valuation, according to a source familiar with the deal.

Founded by a team of AI researchers, Nous Research distinguishes itself by its approach to training AI models. Instead of relying on centralized data centers, the company aims to create a distributed network that leverages the spare computing power of individuals globally. The Solana blockchain plays a key role in this vision, intended to provide the infrastructure for coordination and incentivization of participants.

Paradigm , known for its significant investments in the cryptocurrency space, is making a notable foray into the AI sector with this lead investment. Arjun Balaji, a partner at Paradigm, highlighted the "open, community-oriented approach" of Nous Research as a compelling contrast to the more closed-off development processes of established AI labs.

Nous Research will utilize the $50 million capital injection to enhance its computing capabilities and expand its research efforts. The company has already released several open-source AI models under the name "Hermes," gaining some traction within the AI research community. The platform's decentralized training system, built on Solana, is currently under development, with the specifics of user rewards still being determined.