Polygon invests in AI and blockchain with Edge Matrix Chain funding

Polygon Ventures has led a $20 million funding round for Edge Matrix Chain (EMC), a multi-chain infrastructure project focusing on decentralised AI applications. 

This investment signifies Polygon's (CRYPTO:MATIC) expansion into the AI and DePIN (Decentralised Physical Infrastructure Networks) sectors, aiming to enhance computing power and blockchain integration. 

EMC has been a prominent player in the DePIN space, working to merge computing networks with decentralised AI solutions. 

With this new funding, EMC plans to launch a Layer-1 (L1) blockchain designed to boost GPU computing for AI projects. 

This initiative introduces a new asset class in decentralised finance (DeFi), backed by tokenised real-world GPU resources. 

Users of the L1 blockchain can earn profits by outsourcing GPU resources on-chain. 

To prepare for the L1 blockchain launch, EMC has initiated a two-month public testnet incentive program, offering a $5 million prize pool across two stages. 

The project aims to attract more participants and demonstrate the potential of its platform. 

Polygon's investment aligns with its broader strategy to expand into the AI and DePIN ecosystems. 

Polygon already supports Sentient, an open-source AI platform backed by Peter Thiel's Founders Fund, with its testnet phase supported by an $85 million seed fund. 

Polygon's involvement in these sectors positions it as a key player in managing tokens, rewards, and governance for DePIN applications. 

The convergence of AI and blockchain has emerged as a dominant trend in 2024. 

According to Bitwise, this synergy could add $20 trillion to global GDP by 2030. 

Investment firms like UAE’s Hodler and Gewan have launched a $500 million fund to promote DePIN and AI growth. 

Ethereum (CRYPTO:ETH) co-founder Vitalik Buterin has also highlighted DePIN's potential to revitalise the DeFi sector. 

Fluence Co-Founder Tom Trowbridge emphasised the importance of DePIN in driving crypto adoption: “DePIN is set to drive the next wave of crypto adoption. Its services are easy to understand, allowing millions of people to get involved, and several prominent DePIN projects are on the verge of securing major customers and substantial revenue, marking a significant milestone for the crypto industry. As this revenue begins to grow, global attention will inevitably turn towards this sector.” 

DePIN projects such as Render (CRYPTO:RENDER) and Bittensor (CRYPTO:TAO) are gaining traction, contributing to the sector's near $19 billion market cap. 

As the revenue potential for these projects grows, the focus on DePIN and AI is expected to increase, driving further adoption in the crypto industry. 

At the time of reporting, the Polygon price was $0.4248.