Flora's $401M Shift: Challenging Centralized AI with Decentralized Blockchain

Flora Growth Corp. (NASDAQ: FLGC) has secured a $401 million private placement to reposition itself as a decentralized AI infrastructure company under the rebranded name ZeroStack. The transaction, led by DeFi Dev Corp., Hexstone Capital, and Carlsberg SE Asia PTE Ltd, involves $366 million in in-kind digital assets and $35 million in cash. Proceeds will be used to acquire $0G tokens, the native cryptocurrency of the 0G ecosystem, which powers a blockchain designed for distributed AI infrastructure. The offering includes pre-funded warrants for accredited investors, exercisable post-shareholder approval Flora Growth Corp. (NASDAQ: FLGC) Announces $401 Million Funding with a …^[1].

The 0G blockchain, described as the "largest AI-first blockchain," claims to have trained a 107 billion parameter AI model using distributed clusters over low-throughput internet connections—a 357x improvement over Google’s DiLoCo research. This achievement, according to the company, demonstrates the feasibility of decentralized AI training without centralized data centers. 0G integrates storage, compute, and training marketplaces into a single operating system, enabling Web2 and Web3 developers to deploy AI tools with "transparent, verifiable, and privacy-first" capabilities Flora Growth Corp. (NASDAQ: FLGC) Announces $401 Million Funding with a …^[1].

ZeroStack’s rebranding strategy includes appointing 0G co-founder Michael Heinrich as Executive Chairman and Daniel Reis-Faria as CEO. The company also plans to hold a portion of its treasury in Solana (SOL) tokens as part of a collaboration with DeFi Dev Corp. Heinrich emphasized that the treasury strategy provides institutional investors with "equity-based exposure to foundational infrastructure enabling cost-efficient, large-scale AI development" Flora Growth Corp. (NASDAQ: FLGC) Announces $401 Million Funding with a …^[1].

The 0G ecosystem has expanded rapidly, with over 350 integrations across 236 projects, including decentralized finance (DeFi), gaming, and data analytics platforms. Projects like Oro (enterprise AI procurement) and Warden Protocol (blockchain for AI co-pilots) highlight the versatility of 0G’s infrastructure. The ecosystem’s growth is supported by an $88.88 million funding program for builders, with partners including Alibaba, Stanford, and NTT Docomo .

Critically, 0G’s technical architecture claims to address scalability and cost barriers in decentralized AI. The platform’s four-layer system—chain, storage, data availability, and compute—enables distributed training and inference at a fraction of traditional costs. For instance, the testnet achieved 339 million transactions, with 2,500 TPS and 8,000 validator nodes, demonstrating readiness for mainnet launch .

Analysts note that Flora’s pivot to 0G aligns with growing institutional interest in blockchain-driven AI solutions. The company’s prior role as a pharmaceutical distributor through Phatebo GmbH is being phased out, reflecting a strategic shift toward Web3 infrastructure. However, challenges remain, including regulatory uncertainties and market volatility for $0G tokens. The forward-looking statements in the press release caution that actual outcomes may differ materially from projections Flora Growth Corp. (NASDAQ: FLGC) Announces $401 Million Funding with a …^[1].