Nous Research Secures $50M in Series A Funding Led by Paradigm

Nous Research, a startup focused on decentralized artificial intelligence, has successfully secured $50 million in a Series A funding round. This investment was led by Paradigm, a prominent venture capital firm in the cryptocurrency space, marking a significant milestone in the intersection of blockchain and AI technologies. The funding round values Nous at a $1 billion token valuation, with previous investors including Distributed Global, North Island Ventures, and Delphi Digital, who had contributed to Nous’s earlier $20 million seed rounds.

Nous Research, which has been operational since 2022, aims to develop open-source AI models powered by decentralized infrastructure. The company leverages the Solana blockchain to coordinate and incentivize global participation in training its AI models, positioning itself as a challenger to centralized AI giants like OpenAI and DeepSeek. By harnessing global idle compute power for AI training, Nous Research is taking a unique approach compared to typical crypto-AI projects. Instead of relying on centralized data centers, it enables individuals worldwide to contribute their idle computing power, ensuring secure and incentivized participation through blockchain technology.

The 20-person team at Nous Research plans to allocate much of the new capital toward scaling compute resources and advancing research. In December 2024, Nous announced that it is pre-training a 15-billion-parameter LLM in a decentralized manner, livestreaming progress to showcase transparency and performance. This initiative underscores the company's commitment to creating and serving the world’s best AI, as stated by co-founder Karan Malhotra.

Paradigm's backing of Nous Research signals a deepening interest in AI within crypto venture circles. The firm, founded by Coinbase’s Fred Ehrsam and ex-Sequoia partner Matt Huang, has built a strong reputation for spotting high-potential crypto projects early. Its portfolio includes leading DeFi platforms like Uniswap and dYdX, as well as consistent backing for Ethereum scaling solutions such as Optimism. Paradigm also led a $255 million round for StarkNet, a key player in zero-knowledge rollup technology. This investment in Nous Research further solidifies Paradigm's position as a top-performing crypto VC, known for its strategic investments in innovative projects.

Nous Research's decentralized approach to AI development, powered by the Solana blockchain, represents a significant shift from traditional centralized models. By leveraging global idle compute power and ensuring secure, incentivized participation, Nous aims to challenge the dominance of centralized AI giants. The company's focus on transparency and performance, as demonstrated by its livestreaming of AI model training, sets a new standard for AI development in the blockchain space. With the backing of Paradigm and other prominent investors, Nous Research is well-positioned to make a significant impact in the AI and blockchain industries.