March 5 (Reuters) - IO Research, an artificial

intelligence (AI)-focused blockchain startup, said on Tuesday it

raised $30 million in a Series A funding round from investors

including Hack VC, Solana Labs, and cryptocurrency exchange OKX.

IO Research's primary product, io.net, is a blockchain-based

network that allows users with unused graphics processing units

(GPU) capacity to provide computing power to resource-intensive

AI companies.

The funding announcement signals investor interest in

AI-driven technologies as well as renewed interest in

cryptocurrencies and blockchain technology.

Shares of companies linked to AI infrastructure, such as

Nvidia ( NVDA ) and Super Micro Computer ( SMCI ), have soared

in recent weeks.

Meanwhile, the cryptocurrency market has regained some of

its lost lustre for investors. Its market capitalization is at

its highest since late 2021 at over $2.65 trillion, lifted by

gains in the largest cryptocurrency, bitcoin.

The CoinDesk Indices Computing Index, which includes

AI-linked crypto tokens, has risen 44% in 2024.

"Industry analysts are still radically underestimating how

much compute power will be needed to fuel the next generation of

AI (applications)," said Shayon Sengupta, investment partner at

Multicoin Capital, which participated in IO's funding round.

In February, asset manager VanEck projected revenues from

projects merging crypto and AI would reach $10.2 billion by

2030.

The round also indicates potential fresh legs for

crypto-focused venture capitalists as investors recover from the

fallout of cryptocurrency exchange FTX's implosion and the

subsequent collapse of several prominent funds.

IO Research said the funds will help expand staff, cater to

service demand and further build out io.net.

The company did not disclose its latest valuation after the

Series A round.