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Private AI from Magic Research harnesses legacy hardware in a distributed mesh, orchestrating neural network shards to deliver supercomputer-level inference with 90% lower costs and full data control

August 21, 2025 //  by Finnovate

Magic Research, has launched an artificial intelligence platform for on-premises use that it claims can cut costs by up to 90% from comparable cloud-based services. Called Private AI, the platform is intended to give organizations complete control over their data, infrastructure and brand by operating securely behind a firewall and leveraging existing computing resources. The proprietary technology underlying Private AI is Fabric Hypergrid, a distributed computing mesh that taps into existing hardware on a network, including legacy graphic processing units, central processing units and accelerators, to create the equivalent of an AI supercomputer at a small fraction of the cost. Hypergrid can “shard neural networks during the inference process,” said Humberto Farias, founder and chief executive of Magic Research. Sharding is an architecture originally created for database management systems that breaks monolithic databases into smaller, faster, more manageable pieces called shards that each hold a subset of the dataset. During the inference process, a dynamic model router analyzes the AI task and matches it with the best available computational resource within the private network. The Hypergrid layer then orchestrates the workload, performing model acceleration and distributing shards of the neural network across the available hardware before reassembling the results. The model-agnostic platform provides a white-labeled AI chatbot experience with customizable user interfaces, workflows, models and permissions. A component called GatewAI, enforces policies, filters content, logs activity and ensures alignment with industry-specific regulations like FERPA, HIPAA, GDPR and SOC 2.

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Category: AI & Machine Economy, Innovation Topics

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