Multicoin Capital Invests in Grass, Citing Search Infrastructure Buildout

Global digital-asset investment firm Multicoin Capital has invested in Grass, a decentralized physical infrastructure network, or DePIN, project.

On Sept. 29, Multicoin Capital said on its website that it invested in Grass through its hedge fund and venture fund. It did not disclose the size of the investment.

Grass is a decentralized network that rewards users for sharing unused internet bandwidth and uses that capacity to collect and process data from the public internet. The Grass network now has more than 6 million contributors.

Multicoin Capital said it was drawn to Grass's potential to expand beyond supplying data for training artificial intelligence models into the real-time data search and collection market. "Grass is uniquely positioned to supply the fresh data needed when AI models search the web to answer questions or when agents retrieve information before taking action," the firm wrote. It added that the real-time data search market could be several times larger than the pre-training data market because it generates recurring requests.