Web3 AI Bluwhale Raises $100M Funding

AI Web3 start-up Bluwhale has raised $100 million in funding. The sum comprises proceeds from a Seed/Series A round, a $75 million token purchase commitment, grants, and node sale proceeds, the company mentioned in a release shared with AlexaBlockchain.

This funding will allow the company to expand its Web3 intelligence layer across multiple Layer 1 and Layer 2 blockchains.

The Vision for Decentralized AI: Introducing Layer 3

Decentralized AI has the potential to disrupt traditional AI paradigms by reducing reliance on centralized data silos and computational resources, making AI more inclusive and equitable.

Bluwhale intends to build a specialized Layer 3 powered by zero-knowledge proofs to enhance AI capabilities on blockchain networks. While L1 and L2 chains manage fundamental blockchain operations—including transactions, consensus mechanisms, data storage, and computation—Bluwhale’s L3 aims to provide a tailored environment for AI workloads. The L3 solution will enable the aggregation, contextualization, and privacy optimization necessary for AI agents and large language models (LLMs) to train and operate seamlessly on decentralized infrastructure.

“While individual building blocks to power decentralized AI on the blockchain are available, they are mostly fragmented across platforms and chains,” said Han Jin, CEO of Bluwhale.

“Our L3, in collaboration with Caldera, will deliver data contextualization and orchestration of the scattered blocks to create the most optimal and secure aggregation layer for AI agents, models, and LLMs to plug into, similar to a multi-functional RAG system,” Han added.

What sets Bluwhale apart?

Bluwhale aims to decentralize AI workloads by leveraging nodes powered by individuals. These nodes, which can operate on mobile devices, will contribute to data verification, storage, and computation. This approach ensures scalability and promotes individual participation in decentralized AI ecosystems. In addition, the custom zk-layer will initially launch on Arbitrum, an Ethereum-based L2 chain, to optimize for privacy, speed, and cost-efficiency.

“To decentralize AI on-chain, data, storage, and computation must exist on a single aggregation layer, allowing different parties to consume and contribute most securely and safely possible,” said Matt Katz, CEO of Caldera, a partner in the project.

Kiet Fong, Head of Partnerships at Arbitrum (OffChain Labs), mentioned Bluwhale’s work in simplifying blockchain complexity. “People often say blockchains are transparent, but true fairness requires intelligence and insights at an aggregation level. Bluwhale’s AI Layer simplifies the complexity by making it as easy as plug-n-play for AI agents and having a friendly chat with the chain directly.”

Bluwhale is backed by prominent VCs and Investors

Bluwhale has garnered support from a mix of blockchain innovators, venture capitalists, and prominent investors. Notable names include Arbitrum, Movement Labs, Cointelegraph, SwissBorg, Awaken Finance, CoinBureau, Altcoin Daily, and DWF Labs.

Awaken Foundation’s Director, Nattaphol Vimolchalao, noted, “Awaken Foundation is proud to back the Bluwhale team in their mission to empower individuals to transform their data and mobile into an asset class. Their innovative work aligns perfectly with our commitment to investing in bold, forward-thinking teams driving transformative technologies powered by AI within the broader Web3 ecosystem.”

Bluwhale’s earlier investors include industry heavyweights such as SBI Holdings, GSR Ventures, Cardano, and Primal Capital. Tech luminaries including Charles Huang (creator of Guitar Hero) and Jack McCauley (founder of Oculus) have also supported the project.

Key Challenges and Opportunities

The intersection of AI and Web3 represents an area of immense potential, but also significant challenges. AI models require enormous computational resources, robust data pipelines, and an environment that ensures privacy and security. Bluwhale’s zk-enabled L3 layer is designed to address these pain points by providing:

Data Aggregation and Contextualization: By unifying fragmented data sources across chains, Bluwhale’s platform simplifies the training and inference processes for AI models.
Privacy and Security: Zero-knowledge proofs ensure data privacy while maintaining transparency and verifiability, a critical requirement for enterprise adoption of blockchain-based AI solutions.
Scalability: Leveraging mobile devices as nodes introduces a democratized approach to resource sharing, enabling wider participation and scalability.

Bluwhale’s decentralized AI infrastructure is expected to have far-reaching applications, ranging from decentralized finance (DeFi) and supply chain management to personalized healthcare and AI-driven dApps. Its ability to contextualize and aggregate data positions it as a game-changer for industries reliant on intelligent decision-making systems.

Strategic Partnerships and Scaling

One of Bluwhale’s most notable collaborations is with Arbitrum and Caldera, which ensures the L3 layer is optimized for decentralized AI workloads. The partnership with Caldera focuses on creating a secure aggregation layer for data orchestration, while Arbitrum’s L2 infrastructure provides the foundation for cost-efficient operations.

Moreover, the start-up’s ability to onboard a diverse array of investors and partners, including prominent names in the blockchain and tech sectors, indicates strong market validation. As Bluwhale looks to deploy its solutions across multiple L1 and L2 chains, its focus on privacy, scalability, and democratization of AI resources positions it uniquely within the competitive Web3 landscape.

Industry Implications and Competitive Landscape

Bluwhale enters a competitive space where companies like Fetch.ai, SingularityNET, and Ocean Protocol have also been exploring decentralized AI solutions. However, Bluwhale’s focus on creating a dedicated L3 for AI offers distinct advantages. Its integration with mobile devices as nodes and its collaboration with ecosystems like Arbitrum provide a competitive edge in addressing scalability and accessibility challenges.

Disclaimer: The information provided on AlexaBlockchain is for informational purposes only and does not constitute financial advice. Read complete disclaimer here.

Image Credits: Unsplash, Shutterstock, Getty Images, Pixabay, Pexels, Canva