AlphaTON Secures $46M Deal to Expand Cocoon AI With NVIDIA Chips

TLDR

• AlphaTON Capital Corp has signed a $46 million deal to expand its AI compute infrastructure.
• The company will deploy 576 NVIDIA B300 GPUs to support the Telegram-based Cocoon AI network.
• AlphaTON has contributed $4 million in cash and arranged debt and equity financing to complete the deal.
• The GPUs are scheduled for delivery in February with full deployment expected by March.
• This marks AlphaTON’s first large-scale confidential compute deployment linked to Cocoon AI.

AlphaTON Capital Corp (Nasdaq: ATON) has secured a $46 million infrastructure agreement to grow its confidential compute capacity. The deal will deploy 576 NVIDIA B300 GPUs to scale Cocoon AI’s decentralized compute network, native to Telegram. The company said this marks its first major hardware deployment, further expanding its AI business unit.

AlphaTON Grows Confidential Compute Infrastructure

AlphaTON confirmed it will receive the GPUs in February, backed by a mix of debt, equity, and cash contributions. The firm paid $4 million upfront and arranged $32.7 million through closed non-recourse debt financing. It will fund the remaining $9.3 million in equity across staggered payments by March.

The company described the deal as “our first large-scale confidential compute deployment,” indicating a new stage for its hardware strategy. It aims to link its infrastructure to the Cocoon network to process decentralized AI queries. Cocoon operates within the Telegram ecosystem and runs on the TON blockchain.

Chief Investment Officer Enzo Villani stated the firm has reduced risk by “adding physical compute assets, strategic partnerships, and revenue-generating infrastructure.” He added that the firm is positioning itself for long-term AI cycles through physical expansion. AlphaTON’s current balance sheet shows $20 million in assets before the new deal.

Expanding Involvement With Cocoon AI

AlphaTON’s involvement with Cocoon AI builds on its September launch of a Toncoin-focused treasury strategy. The company previously secured $36.2 million in private funding and a $35 million loan from BitGo Prime. It earmarked those funds to accumulate Toncoin and support Telegram’s growing mini-app economy.

The Cocoon platform offers privacy-focused AI compute using GPUs contributed by users or partners like AlphaTON. It rewards participants in Toncoin for compute contributions, creating a new revenue path for AlphaTON. The integration with Telegram’s large user base could unlock broad utility for decentralized AI.

AlphaTON said Cocoon’s privacy standards are stricter than centralized AI providers. It is aiming for deeper integration by scaling its compute power across Telegram’s one billion monthly users. This makes the NVIDIA chip deal central to its roadmap for 2024.

Broader Plans Tied to Toncoin Ecosystem

In December, AlphaTON filed a $420.69 million shelf registration to raise capital for expansion across Toncoin-linked assets and services. The company disclosed that funds would target AI deployments, TON mini-apps, and the co-branded TON Mastercard. These investments are aligned with AlphaTON’s broader strategy to build digital infrastructure.

The firm has previously outlined plans to purchase up to $100 million in Toncoin as part of its treasury policy. Its relationship with Cocoon AI supports that initiative by driving ecosystem demand and usage. Toncoin also powers payments across the Confidential Compute Open Network.

Major investors backing the TON ecosystem include Sequoia Capital, CoinFund, Benchmark, and Skybridge, according to prior announcements. Pantera Capital has reportedly made its largest investment of 2024 in Toncoin. These developments show growing institutional interest in Telegram’s blockchain initiatives.

AlphaTON continues to position itself as a core participant in the TON and Cocoon networks. With delivery of the new NVIDIA chips expected in February, the full deployment will be finalized by March. This marks a clear step forward in AlphaTON’s AI expansion through decentralized infrastructure.

The post AlphaTON Secures $46M Deal to Expand Cocoon AI With NVIDIA Chips appeared first on CoinCentral.