Distributed Cloud Object Storage Firm Storj Acquires Valdi

DateJul 9, 2024

Storj, a company with a groundbreaking approach to distributed cloud object storage, has made a significant move by acquiring Valdi, a provider of high-performance cloud computing solutions. This acquisition would mark a strategic advancement for Storj, aiming to integrate and enhance their services in the highly competitive cloud market, particularly focusing on AI-driven innovations.

Storj has carved out a niche in the $100 billion cloud storage market by offering solutions that would not only cut costs significantly but also reduce carbon emissions. Its open-source distributed cloud storage platform is based on blockchain technology where anyone can sell their extra hard drive space. This green and economical approach has been pivotal in their market disruption. Meanwhile, Valdi has been addressing a critical bottleneck in the tech industry: the shortage of GPUs. These GPUs are essential for AI training and inference, which are increasingly in demand across sectors like technology, research, and life sciences

Valdi’s business model focuses on making high-performance GPUs available on demand, at a large scale, and at competitive prices. This capability is crucial in an era where AI development is accelerating and requires vast computational resources. Through the combination of Storjs cutting-edge cloud storage solutions and Valdis GPU expertise, the combined company is positioned to provide a comprehensive and scalable cloud solution. The goal of this combination is to accelerate innovation at scale and give companies the resources they need to effectively manage AI workloads. Financial terms of the acquisition by Storj were not disclosed.

Colby Winegar, Storjs Chief Revenue Officer, highlighted the strategic synergy between the two companies. He pointed out that the integrated storage and GPU solution is especially optimized for generative AI workloads, which are becoming increasingly central to enterprise innovation. With enterprise AI spending projected to reach $1 trillion over the next decade, and over 70% of enterprises exploring AI applications, the timing of this acquisition is opportune.

Generative AI, a field requiring substantial computational power and data handling, would stand to benefit immensely from the combined capabilities of Storj and Valdi. Valdis global compute infrastructure allows developers and enterprises to scale their AI projects seamlessly, from development through to commercialization. This infrastructure would support scalable, cost-effective solutions that meet the demands of modern AI applications.

Distributed Architectures

Both companies operate on distributed architectures, which may bring several advantages, including eliminating supply chain issues and reducing the need for resource-intensive maintenance. This setup would ensure that their services are not only scalable and reliable but also secure and sustainable. Valdis CEO, Nikhil Jain, emphasized the enhanced customer benefits and growth potential that the merger would bring, noting that Valdi’s platform surpasses traditional GPU provisioning methods, particularly under high demand.

Storj and Valdis combined offerings would already be proving their value in academic and research settings. Institutions like CalTech and USC/ISI are leveraging Valdis cloud compute platform for their AI workloads, demonstrating the high performance and scalability of their solutions at a fraction of the cost and environmental impact of traditional methods.

The ease of deploying powerful GPU clusters through Valdis platform would be a significant selling point, offering flexibility, speed, and cost-efficiency without long-term contracts. With a network boasting over 16,000 GPUs globally, Valdi ensures that computational resources are readily available to meet diverse needs.

Storj CEO Ben Golub reflected on the broader vision behind the acquisition, likening it to the early days of AWS with its foundational S3 object storage and subsequent EC2 computing services. He stated that Storj aims to build on its strong foundation in distributed cloud object storage by expanding into a full stack cloud offering through the acquisition of Valdi. This expansion is expected to deliver enhanced value to a wide range of global customers.

Mutual Commitment to Digital Sustainability

Additionally, Storj and Valdi are united in their commitment to digital sustainability. They co-founded the Digital Sustainability Alliance (DSA) with Ad Signal to promote technology that supports environmental stewardship, reinforcing their shared vision of responsible innovation.

In summary, Storjs acquisition of Valdi represents a strategic leap towards providing integrated, scalable, and sustainable cloud solutions, poised to meet the growing demands of AI and other data-intensive industries. This merger would not only augment their technological capabilities but also aligns with their mission of fostering a greener and more efficient digital future.

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