purplesquirrelnetworks/aidp-neural-cloud-paper

AIDP Neural Cloud: Distributed LLM Inference on Decentralized GPU Networks

Authors: Matthew Karsten (Purple Squirrel Networks) Date: February 2026 License: MIT

📄 Abstract

We present AIDP Neural Cloud, a distributed large language model (LLM) inference system built on decentralized GPU networks. Our approach leverages geographically distributed GPU nodes to provide OpenAI-compatible LLM inference with significant improvements in both cost efficiency and latency. Through intelligent load balancing and fault-tolerant architecture, we achieve 47% cost reduction and 28% faster latency compared to centralized providers like OpenAI. The system demonstrates scalability to 50 requests per second with automatic failover capabilities, making decentralized GPU compute viable for production LLM deployments.

🎯 Key Results

Metric	AIDP Neural Cloud	OpenAI GPT-4o-mini	Improvement
p50 Latency	180ms	250ms	⚡ 28% faster
Cost per 1M tokens	$0.08	$0.15	💰 47% cheaper
Throughput	50 req/s	N/A	📈 Scalable

🏗️ Architecture

┌─────────────────────────────────────────────────────────┐
│                  Neural Cloud                           │
├─────────────────────────────────────────────────────────┤
│  API Gateway                                            │
│  └── /v1/chat/completions (OpenAI-compatible)          │
├─────────────────────────────────────────────────────────┤
│  Load Balancer                                          │
│  └── Health checks → Route to fastest node             │
├─────────────────────────────────────────────────────────┤
│  AIDP GPU Workers (N nodes)                            │
│  └── vLLM inference engine                             │
│  └── Continuous batching                               │
│  └── PagedAttention for KV cache                       │
└─────────────────────────────────────────────────────────┘

🚀 Quick Start

import openai

# OpenAI-compatible API
client = openai.OpenAI(
    base_url="https://neural-cloud.aidp.store/v1",
    api_key="your-api-key"
)

response = client.chat.completions.create(
    model="purple-squirrel-r1",
    messages=[
        {"role": "user", "content": "Explain decentralized GPU compute"}
    ]
)
print(response.choices[0].message.content)

📊 Benchmark Results

Latency Comparison

Metric	AIDP Neural Cloud	OpenAI GPT-4o-mini	Improvement
p50 Latency	180ms	250ms	28% faster
p95 Latency	320ms	450ms	29% faster
p99 Latency	480ms	650ms	26% faster

Cost Analysis

Usage	AIDP Neural Cloud	OpenAI GPT-4o-mini	Annual Savings
1M tokens/month	$0.08	$0.15	$0.84/year
10M tokens/month	$0.80	$1.50	$8.40/year
120M tokens/year	$9.60	$18.00	$8.40/year

Throughput Scalability

Concurrent Users	Requests/Second	Average Latency	Error Rate
1	5.2	180ms	0%
10	32.1	195ms	0%
50	50.3	285ms	0.2%

🔬 Technical Contributions

1. Distributed Architecture: Novel load balancing system routing requests across decentralized GPU nodes
2. Cost Efficiency: 47% reduction in inference costs through decentralized resource pooling
3. Latency Optimization: 28% improvement in p50 latency via geographic distribution
4. Fault Tolerance: Automatic failover with health-based node routing
5. OpenAI Compatibility: Drop-in replacement API for existing applications

💾 Deployed Models

Model	Parameters	Quantization	VRAM Required
Purple Squirrel R1	8B	4-bit NF4	~6GB
Llama 3.1 8B	8B	4-bit	~6GB
Mistral 7B	7B	4-bit	~5GB

🌍 Decentralized Benefits

• Geographic Distribution: Lower latency globally through regional nodes
• Redundancy: No single point of failure with automatic failover
• Cost Efficiency: 50-70% cheaper than centralized providers
• Privacy: Request processing on independent decentralized nodes
• Scalability: Horizontal scaling through node addition

📖 Full Paper

Read the complete research paper: aidp-neural-cloud-paper.md

🔗 Links

• Live Demo: https://neural-cloud.aidp.store
• API Documentation: https://neural-cloud.aidp.store/docs
• AIDP Marketplace: https://aidp.store/marketplace/neural-cloud
• Code Repository: https://github.com/purplesquirrelnetworks/aidp-neural-cloud
• Twitter/X: https://x.com/purplesquirrelnetworks

📚 Citation

@article{karsten2026aidp,
  title={AIDP Neural Cloud: Distributed LLM Inference on Decentralized GPU Networks},
  author={Karsten, Matthew},
  journal={Purple Squirrel Networks Technical Report},
  year={2026},
  url={https://huggingface.co/purplesquirrelnetworks/aidp-neural-cloud-paper}
}

🙏 Acknowledgments

We thank the AIDP community for providing decentralized GPU infrastructure and the vLLM team for their high-performance inference engine.

📄 License

MIT License - See LICENSE for details

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Keywords: Distributed Systems, Large Language Models, GPU Computing, Decentralized Infrastructure, Cost Optimization