AI Is Growing Faster Than the Systems Supporting It: Who Fills the Gap?
Jason Dussault
Chief Executive Officer, Co-Founder
Blog
7 min read
This Post is disseminated on behalf of Intellistake Technologies Corp.
“This is the largest infrastructure buildout in human history."
That's NVIDIA CEO Jensen Huang at Davos. And he wasn't exaggerating.
AI needs energy, chips, data centers, networks — and right now, there isn't enough of any of it. Computing capacity remains scarce. Rental prices keep rising. Even with over $100 billion in VC investment in 2025, demand is still outpacing supply.¹
When Larry Fink asked whether we're in an AI bubble, Huang's response was telling: the real question isn't whether we're investing too much. It's whether we're investing enough.¹
At Intellistake, this is exactly why we've focused on distributed AI systems rather than centralized ones. The giants are building as fast as they can; but they can't build fast enough. That creates an opening.
Ethereum co-founder Vitalik Buterin made a similar case recently, outlining a vision where blockchain serves as infrastructure for AI, reducing the need to trust centralized providers.2
The Constraint Nobody's Talking About
Huang described AI as a "five-layer cake" energy at the bottom, then chips, cloud infrastructure, AI models, and applications at the top.3 Each layer needs massive investment. Reports suggest TSMC may invest an additional $100 billion in its U.S. facilities.4 Micron has launched a $200 billion memory investment in the US alone.5
But here's the problem: data centers are hitting power limits. Some regions are literally running out of electricity. The centralized model of giant facilities with massive power draw and single points of control is straining under the weight of AI demand.
So what happens when centralized systems can't keep up?
AI That Doesn't Need a Data Center
This is where distributed AI comes in. Instead of sending all data back to one central location for processing, what if AI could run where the data actually is?
Case in point: Genesis-1.
Orbit AI's Genesis-1 satellite, deployed in December, is running a 2.6-billion-parameter AI model directly in space.6 Instead of transmitting massive volumes of raw satellite data back to Earth for processing, Genesis-1 analyses information in orbit and sends back only the results.
The impact: response times drop from hours to seconds. Bandwidth requirements fall by up to 99%. And there's no dependence on a single ground-based data center.6
Intellistake completed a US$500,000 strategic equity investment in Orbit AI because we believe in this shift and we're actively working toward it. Genesis-1 is proof that meaningful intelligence can operate beyond traditional Earth-based systems with less latency, less bandwidth, and no single point of failure.
What Verification Looks Like in a Distributed World
Here's the part most people miss about decentralized systems: they don't run themselves.
Every transaction needs to be verified. Every piece of data needs to be validated. When AI operates across distributed networks; whether in orbit, across compute nodes, or through agent-to-agent transactions - someone has to keep the system honest.
That's what validators do. Think of it like the toll booths on a highway, or the servers that keep the internet running. Every time data moves across a decentralized network, validators verify it's legitimate.
At Intellistake, we operate validator infrastructure on the FET network. We run the computers that verify transactions on this decentralized network. It's not glamorous, but it's essential and it becomes more essential as AI systems move beyond centralized control.
We're now evaluating how blockchain-based verification could integrate into Orbit AI's planned Genesis-2 mission, subject to engineering feasibility, agreement on terms and regulatory approvals.6 The goal: bring the same trust and transparency that blockchain provides to AI systems operating in space.
Distributed AI Is Already Here
Huang is right that AI needs the largest infrastructure buildout in history.
But the assumption that this buildout will look like what came before. Giant centralized facilities controlled by a handful of companies might be wrong..
Distributed AI is already here. Genesis-1 is functioning in orbit. Decentralized compute networks are processing real workloads. AI agents are beginning to transact autonomously.
All of these systems need verification. All of them need validators keeping them accurate. That's the gap we're focused on filling.
The largest buildout in history is underway. At Intellistake, we're not building the AI models. We're building the picks and shovels, the verification layer underneath.
There has been significant volatility in digital assets and their value can decline rapidly, which in turn would lead to a decline in the stock price of companies holding digital assets. Intellistake is a start-up that does not have the same access to capital as other larger more established companies.
Intellistake has just commenced operating its business and is at an early stage of development. Intellistake is entering this space by acquiring and operating blockchain validator hardware that supports AI networks and investing in AI-related digital tokens to primarily operate validator hardware.
Intellistake is presently evaluating the regulatory framework for tokenization. Any tokenization will be subject to it being completed in compliance with applicable law, regulatory requirements and terms of any underlying agreements associated with the underlying assets. The actual structure of such tokenization, the assets that would be subject to tokenization, and the associated timeline, have not yet been determined. Intellistake will provide further updates as material developments related to this tokenization strategy occur.
Intellistake is developing custom AI software systems called "AI Agents" for businesses. It recently announced the development of IntelliScope, a newly designed enterprise artificial-intelligence (AI) suite that applies decentralized AI technologies to deliver transparent and verifiable corporate intelligence. IntelliScope, which is in testing, is being publicly introduced as Intellistake's enterprise AI suite, reflecting the Company's focus on advancing practical applications of decentralized AI technologies.
The IntelliScope suite is being developed as a collection of modular AI agents, each intended to address specific enterprise challenges. Development has advanced through internal closed testing, where functionality is being refined and validated. Built to leverage decentralized AI technologies developed within the ASI Alliance FET token ecosystem, IntelliScope is now preparing to move into closed beta testing with an enterprise client, a phase focused on gathering feedback to shape premium features and expand real-world use cases.
The Company intends to deliver these solutions either as one-time projects or ongoing subscription services. Revenue is expected to come from implementation fees and monthly subscription payments. The Company does not presently have any customers. Intellistake is just commencing operations. It is targeting significant growth but its business is subject to several risks related to general business, economic and social uncertainties; the sufficiency of cash to meet liquidity needs; legislative, political and competitive developments; the inherent risks involved in the digital currency and general securities markets; the volatility of digital currency prices and the additional risks identified in the "Risk Factors" section of the Company’s filings with applicable securities regulators. Intellistake has not yet developed or commercialized its AI solutions.
Completion of the Singularity Venture Hub (“SVH”) acquisition remains subject to completion of satisfactory due diligence, the negotiation, and execution of a definitive agreement ("Definitive Agreement") that will include representations, warranties, covenants, indemnities, termination rights, and other provisions customary for a transaction of this nature, no objection from the Canadian Securities Exchange, and shareholder approval of SVH, if required.
This report contains "forward-looking information" concerning anticipated developments and events related to the Company that may occur in the future. Forward looking information contained in this report includes, but is not limited to, all statements in respect of the Company's growth and development, the operations and business segments of the Company, support for decentralized AI and blockchain networks, the details of the collaboration with Orbit AI and its expected benefits; the Company’s contributions towards the collaboration with Orbit AI; the timelines for Orbit AI’s operation; and Intellistake’s strategy to support tokenized, decentralized AI infrastructure.
In certain cases, forward-looking information can be identified by the use of words such as "expects", "intends", "anticipates" or variations of such words and phrases or state that certain actions, events or results "may", "would", or "might" suggesting future outcomes, or other expectations, assumptions, intentions or statements about future events or performance. Forward-looking information contained in this report is based on certain assumptions regarding, among other things, the Company and SVH satisfy all conditions necessary to close the proposed transaction; the Company will continue to have access to financing until it achieves profitability; obtaining the necessary regulatory approvals; the technology and blockchain industries in which the Company intends to focus its business in will grow at the rate and in the manner expected; the ability to attract qualified personnel; the success of market initiatives and the ability to grow brand awareness; the ability to distribute Company's services; the Company creates strategies to mitigate risks associated with cryptocurrency price fluctuations; the Company and SVH remain compliant with all applicable laws and securities regulations and applicable licensing requirements; the Company engages and collaborates with local experts, as necessary, to address jurisdiction-specific matters and ensures compliance with foreign regulations to avoid penalties; the Company addresses any potential cybersecurity threats promptly and effectively; the ability of the Company to develop its technology, acquire customers and have revenue; the ability to successfully deploy the new business strategy as a result of the change of business. While the Company considers these assumptions to be reasonable, they may be incorrect.
Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different from any future results expressed by the forward-looking information. Such factors include risks related to general business, economic and social uncertainties; failure of the Company and SVH to satisfy all conditions necessary to close the proposed transaction; failure to raise the capital necessary to fund its operations; inability to create strategies to mitigate the risks associated with cryptocurrency price fluctuations; the costs of regulation in the digital asset industries increase to the extent that the Company is no longer generating sufficient returns for shareholders; failure to promptly and effectively address cybersecurity threats; insufficient resources to maintain its operations on a competitive basis; and the actual costs, timing and future plans differs expectations; legislative, environmental and other judicial, regulatory, political and competitive developments; the inherent risks involved in the cryptocurrency and general securities markets; the Company may not be able to profitably liquidate its current digital currency inventory, or at all; a decline in digital currency prices may have a significant negative impact on the Company's operations; the Company's success may depend on the continued involvement of key personnel, including advisors, whose involvement cannot be guaranteed; institutional adoption of decentralized AI infrastructure remains uncertain and may not occur at the pace or scale anticipated; evolving regulatory frameworks, including those related to AI (such as Canada's proposed Artificial Intelligence and Data Act), may impose additional compliance burdens or restrict certain business activities; valuation figures are based on publicly available market data and internal assessments at the time of the referenced transactions and may not reflect current or future valuations; the volatility of digital currency prices; the inherent uncertainty of cost estimates and the potential for unexpected costs and expenses, currency fluctuations; regulatory restrictions, liability, competition, loss of key employees and other related risks and uncertainties; delay or failure to receive regulatory approvals; failure to attract qualified personnel, labour disputes; and the additional risks identified in the "Risk Factors" section of the Company's filings with applicable Canadian securities regulators.
Although the Company has attempted to identify factors that could cause actual results to differ materially from those described in forward-looking information, there may be other factors that cause results not to be as anticipated. Readers should not place undue reliance on forward-looking information. The forward-looking information is made as of the date of this report. Except as required by applicable securities laws, the Company does not undertake any obligation to publicly update forward-looking information.
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