In these peculiar times, it’s a departure from the norm to see a blockchain billionaire, rather than the usual Big Tech giants, providing the essential computing power for advancing generative AI.
Just recently, Jed McCaleb, co-founder of blockchain ventures like Stellar, Ripple, and Mt. Gox, along with his aerospace company Vast, launched a 501(c)(3) nonprofit organization. This nonprofit made a notable purchase of 24,000 Nvidia H100 GPUs to establish data centers aimed at offering computational capacity to AI projects.
The GPU cluster, estimated at a staggering half a billion dollars and one of the largest globally, is already in use by startups Imbue and Character.ai for AI model experimentation. These data centers are overseen by Eric Park, the CEO of Voltage Park, a recently established organization tasked with managing the centers.
The primary objective behind this initiative is to facilitate access for startups, scale-ups, and research institutions that face difficulties due to restrictive contracts, GPU scarcity, and high minimum purchase requirements. The aim is to grant them access to the critical resources needed for innovation.
Most companies engaged in model training, particularly those working with generative AI models like ChatGPT and Stable Diffusion, rely heavily on GPU-based hardware. GPUs are well-suited for the intensive parallel computations necessary for training and deploying today’s most advanced AI systems.
However, the supply of these chips falls significantly short of demand. Microsoft has warned of a severe shortage of server hardware for AI operations, potentially leading to service disruptions. Even some of Nvidia’s top-performing AI cards are reportedly unavailable until 2024.
Eric Park emphasized the critical nature of the compute shortage, explaining that startups, scale-ups, and large research labs all face difficulties in acquiring H100 GPUs for their model training. Smaller enterprises face additional challenges as they often can’t meet the substantial contract requirements imposed by major cloud providers, further stifling AI innovation.
The formation of Voltage Park follows a rather unique structure. Jed McCaleb established a nonprofit entity known as the Navigation Fund, to which he contributed an endowment. The Navigation Fund then procured the aforementioned H100 GPUs and transferred ownership to the for-profit entity, Voltage Park, which technically operates as a subsidiary of the Navigation Fund.
Voltage Park’s primary role is to manage a cluster of this magnitude, given the for-profit subsidiary’s specialization in cutting-edge compute operations. This structure serves strategic purposes and allows the Navigation Fund to focus on its charitable mission.
It’s important to note that McCaleb does not have ownership or involvement in the Navigation Fund or Voltage Park. Both entities have their own executive teams and independent boards of directors. While the exact tax implications of McCaleb’s donation remain undisclosed, there may be a substantial benefit, even if the nonprofit organization promptly passes on the assets to Voltage Park.
Voltage Park won’t be limited to just this endeavor. The Navigation Fund has described itself as a “long-term” nonprofit foundation with interests spanning various sectors, including animal welfare, criminal justice reform, open science, climate, and AI safety. The organization will provide support to a range of entities, including organizations, activists, advocates, and entrepreneurs.
As of now, the Navigation Fund may not have formal nonprofit registration in place, but this may be due to pending IRS processing.
A portion of Voltage Park’s profits will contribute to the Navigation Fund to advance its philanthropic mission.
While Voltage Park’s complete cluster is not yet online, plans indicate it will be operational in three states — Texas, Virginia, and Washington — by the end of the year. A significant share of its capacity will be reserved for early-stage startups and developers, offering both short-term leases and hourly billing. The goal is to make machine learning more accessible and lower the entry barriers for a broader audience, and Voltage Park may explore additional services as the industry evolves.
