Key Takeaways:
- The global GPU shortage began in 2020 amid widespread disruptions in global supply chains.
- The increased demand for AI technologies further intensifies this problem.
- Analysts see a potential relief in decentralized rendering capabilities.
YEREVAN (CoinChapter.com) — The GPU shortage is a running problem that has been present ever since the COVID-19 pandemic. Furthermore, the shortage became more acute as the demand for AI technology increased.
Therefore, to combat this situation, investors and companies started to search for alternative solutions, including “Decentralized Rendering Technology.”
Let’s dive and see what the possible prospects are.
The Growing GPU Problem
A breakdown in the supply chain during the COVID-19 era boosted GPU shortages, thanks to semiconductor factories shutting down.
Furthermore, competition among companies and higher volumes of crypto-mining worsened the problem. As of 2023, the issue is present in 169 industries worldwide, with the arrival of ChatGPT and other AI tools escalating fears about a worsening GPU supply problem.
That is because artificial intelligence requires significant computational power to function. According to UBS Investment Bank analyst Timothy Arcuri, training ChatGPT3 alone needed over 10,000 Nvidia GPUs, and future generations of Chatbots may require even more semiconductor technology.
Decentralized Solutions like Render Network
As demand and prices for AI tech surge, investors start to seek alternative assets to compensate for the GPU crisis.
Blockcrunch Analyst Jason Choi points out Render Network as a viable alternative, saying that it is a low-cost choice compared to GPUs. Excerpts from his statement:
“As demand for GPU computing power is expected to soar in fields like gaming, metaverse development, architecture, animation, product design, augmented reality (AR), and more recently, AI tooling, RNDR may present an accessible alternative to expensive computing equipment typically required for creating 3D graphics.”
In addition, Twitterati and Investor Ericzoo.eth expressed optimism toward the Render Network project.
We are on the cusp of a global GPU shortage. ChatGPT alone needs upwards of 10,000 GPUs for continuous training. By Q3 of this year, it will be a full blown arms race between the top 100 corporations.
— Ericzoo.eth (@ericzoo) June 4, 2023
Nothing else in crypto is as well positioned to go parabolic than $RNDR.
In short, Render Network wants to provide more cost-effective and democratized technologies that can ease the stress in the semiconductor sector and potentially revolutionize AI computing.
Additionally, this approach to computing is grounded in blockchain and cloud-based technology that can solve complex AI processing. It’s potentially less dependent on physical GPUs and utilizes the latter more effectively. It also rewards participation by its nature.
The network’s capacity to distribute the workload across multiple GPUs enables quick and efficient rendering task processing. The people who “lend” their GPUs become so-called node operators.
Furthermore, the RNDR token approach allows individual creators to mine RNDR tokens when their blended GPU is unused.
And the earned tokens can also be used as payment for various rendering services that, in turn, promote its micro-economy where services are paid with RNDR only. Plus to all that, RNDR can also serve as means of exchange.
RNDR Investors Express Moderat Interest
Ever since news broke out about the potential of the Render Network, its associate cryptocurrency RNDR rallied for a brief while until it suffered a downturn as of June 6, 2023.
As of June 6, the RNDR token is showing bearish dynamics. It experienced a 13.71% loss in price over the last 24 hours.
In conclusion, The Render Network may provide viable answers to the GPU crisis. Yet it still seems to lack any mass acknowledgment or considerable investor interest.
However, as the demand for AI and adjacent technology grows, investors might start giving more notice toward decentralized rendering.
