AI infrastructure firm secures up to $500 million onchain loan after bypassing banks

Core Insights - Sharon AI, an Australian high-performance computing company, has secured up to $500 million in financing from blockchain-based lender USD.AI to expand its GPU infrastructure in the Asia-Pacific region [1] - The financing will support the deployment of compute systems for training and running large AI models, with an initial rollout of $65 million expected to begin this quarter [1] Financing Structure - The agreement allows Sharon AI to access capital through a non-recourse credit facility, where loans are secured by physical GPU hardware instead of corporate assets [2] - USD.AI's onchain lending system tokenizes verified GPU deployments as collateral, enabling lenders to track performance without traditional credit checks [2] Market Dynamics - The structure aims to accelerate growth for AI infrastructure providers while avoiding slower traditional financing methods, highlighting the role of tokenization in the private credit market [3] - The private credit market's limited liquidity and transparency make it suitable for blockchain solutions, which can enhance safety and accessibility through improved price discovery and reporting [4] Future Outlook - USD.AI has approved over $1.2 billion in GPU-backed facilities for other AI infrastructure firms, indicating a growing trend in this financing model [6] - The potential for blockchain to improve transparency in onchain credit markets may reduce fraud and facilitate traditional investors' entry into the market as crypto-backed loans receive ratings from major credit agencies [5]