The AirBnB of cloud computing - why we are leading a ￡12m. round...

In case you haven't been reading the news, NVIDA results and share price exploded last week.

Ever since Chat GPT launched on 30th November last year and emerged as the killer app that has captured the hearts and minds of the entire world, the demand for computing and graphics processing power has exploded.

AI and Cloud Computing needs are on an exponential rise and this is not a fad. You only need to spend time using Chat GPT, Midjourney and other AI tools to see how much computing power is needed.

It reminds me of the early days of dial-up modems, where you actually have to wait for the computers and connections to catch up with the speed at which you want to work. Solving this problem is one that the brightest minds on the planet are working on.

Here's a clip from the All-In Podcast sharing the highlights of Nvidia results and their views on the impact of AI on compute needs...

AI is the new gold-rush when it comes to investing and compute power is at the centre of this.

As this clip explains, compute demand has increase more in the last few months than it had in the 10 YEARS prior to this time...

While many are putting money into physical data centres and AI based software solutions, Bolt Angels have a different play....

We are leading a ￡12m. round that is investing into the AirBnB of cloud computing. Or to use the more technical term...

Infrastructure?as a Service Marketplace...

For existing data centre owners it provides the following benefits...

1. Profit from under utilised hardware (many data centres run at only 65% capacity due to time of day variations, preparing for future demand, etc).
2. Access to a Global Market.
3. Faster ROI on hardware.
4. New Revenue Streams with Higher Margins.
5. Funds CAPEX to expand.

For buyers of compute power they benefit from...

1. Up to 90% savings on current cloud costs.
2. Up to 70% CO2 Reduction.
3. Increased Cloud Edge Locations.
4. Scalability for Limited Resources.

The team we are backing have deep experience and have previously sold a business in the this sector.

They have also spent many years and a lot of money to build the platform, which recently went live and is expected to generate revenues approaching $10 million by the end of this year alone. They have other streams to the business also and these generated $5m in revenues in 2022.

Just one blue-chip client has told the company that they spend ￡50 million a year on compute and this solution could save them around ￡40 million.

In the same way that AIrBnB disrupted the holiday and hotel market, this business is expected to disrupt the cloud compute market.

They have first-mover advantage, a world-class team and interest from an ever growing number of strategic investors and VC's, with some already on the cap table.

We are very pleased to have been selected to lead the round and look forward to reporting in future newsletters our progress with this business and investment.

Until next time,

Steve Bolton