Crypto Giant Paradigm Bets Big on Solana’s AI Future With $50M Nous Investment

Decentralized AI meets blockchain’s speed demon—and Wall Street’s favorite buzzword bingo just got a $50M stamp of approval.

Why it matters: Paradigm’s cash injection into Nous signals Solana’s rising dominance in the AI-crypto crossover arms race. The startup’s promise? Cutting out Big Tech middlemen with blockchain-powered machine learning.

The fine print: While VCs play hot potato with ’decentralized AI’ narratives, Solana’s low fees and high throughput make it the unlikely infrastructure pick—proving once again that in crypto, the best tech doesn’t always win (just ask the guys still shilling proof-of-work chains).

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.

Crypto is a powerful coordination technology. As crypto has matured, it has been exciting to see it applied to new domains, like building decentralized AI.

Nous is an ambitious, world-class AI lab with a grassroots and open-source ethos that echoes the best of crypto. We are…

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.