USD.AI, built by Permian Labs, raised $13 million in a Series A round led by Framework Ventures, the company said in an announcement made on Thursday, August 14.
The project issues loans to startups that build AI, using GPUs as collateral, and it speeds approvals by more than 90% compared with traditional lenders.
$13M To Back AI Firms
The system runs on-chain and includes USDai, a dollar-pegged token, and sUSDai, a yield-bearing token backed by income-generating compute assets.
The funding will help the team scale lending, expand deposits and move toward a public launch with an ICO and a game-based allocation model.
Funding and focus
Framework led the round and named USD.AI a fresh way to finance AI firms. The startup plans to use the capital to grow its lending book and add more compute collateral.
CEO David Choi said the platform “treats GPUs like commodities,” which lets approvals run automatically without the usual gatekeeping.
The product is aimed at AI companies that need fast access to capital. GPUs do the heavy compute work needed to train and run models, and by accepting GPUs as collateral, USD.AI shortens the time it takes to get a loan.
How the system works?
USD.AI issues loans on-chain, and borrowers post GPU hardware as collateral. The protocol then issues USDai, a token pegged to the dollar. There is also sUSDai, which earns yield and is backed by assets that generate compute income.
This setup lets the lending process be programmatic, and it avoids many manual checks used by banks. As a result, approval time drops by more than 90% compared with standard lenders, the company said.
Market view and comments
Framework’s Vance Spencer compared AI’s capital needs to an “oil boom.” He said USD.AI could open funding to more teams while giving investors yield tied to AI growth. That view links the huge demand for GPUs to a new way of financing tech projects.
The CEO framed the model as a market approach to GPU value. By treating GPUs as tradable assets, the protocol expects to move capital faster into useful computing capacity.
Early traction and deposits
USD.AI ran a private beta that drew $50 million in deposits. The company said the figure shows strong demand from investors and users. With that base, it plans a public launch that includes an initial coin offering and a novel allocation tied to a game-based model.
The team is positioning the protocol as both a lending tool and an investment product. Depositors can back the system and earn returns through sUSDai, which links yield to compute assets that generate revenue over time.
Why GPUs matter?
GPUs accelerate the many calculations AI models require, and they let models train faster and run complex tasks in real time. That makes them valuable collateral compared with ordinary hardware.
Using GPUs as security also ties lending to resources that directly support AI production. The model aims to align capital with the tools that power the industry.
Risks and unknowns
On-chain loans face price swings and technical risk, and GPU values can change with supply and demand. A drop in GPU prices could hurt the collateral side of the equation. The protocol must also manage credit events and the logistics of seizing or liquidating hardware if needed.
Regulatory rules around stablecoins and token sales add another layer of uncertainty. The team will need clear compliance and careful execution to scale safely.
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