DePHY, a decentralized off-chain network that enables efficient operation of DePIN networks, has announced a strategic partnership with Phala Network, a decentralized cloud platform that provides secure, scalable and privacy-preserving computing services.
This partnership enabled the integration of DePHY’s decentralized infrastructure (which serves as a bridge between DePIN and AI networks) into Phala Network’s decentralized cloud computing platform to improve the operation of Phala’s AI computations.
We are proud to announce a strategic partnership with Phala Network @PhalaNetwork, where DePHY will provide the core technology that will power the transition to a full-fledged GPU TEE Cloud.
🔗 The trust layer: where verifiability and integrity come together
For every decentralized service… pic.twitter.com/wZV5JjhFyB
— DePHY (@dephynetwork) November 7, 2025
Why this partnership is crucial for Phala Network
Using its decentralized network, Phala Network enables safe (secure) and confidential (private) AI calculations in Web3. It uses TEE (Trusted Execution Environments) to ensure data confidentiality, secure execution and computational verifiability. Its hybrid infrastructure and zero-trust model make it a reliable solution for the functioning of AI agents and keeping sensitive information (data) safe while interacting with blockchains.
Although AI innovation continues to develop rapidly, computing access remains slow in the Web3 environment. Today, most AI infrastructure companies (such as Phala Network and many others) struggle with high GPU costs, insufficient access to powerful devices, and dependence on monopolistic companies that control cloud computing services.
Phala Network partnered with DePHY to address some of these challenges. By incorporating Phala Network’s confidential GPU computing systems into DePHY’s DePIN framework, Phala now has access to affordable, on-demand computing power.
Revolutionizing AI Agents: The Power of TEE Integration
AI is developing faster than Web3’s technical infrastructure can keep up. GPU scarcity, high costs and monopolies are major challenges that stagnate growth and progress. The integration of DePHY’s technology solution helps solve these real-world problems, a development that will occur as Phala Network continues to develop its TEE network.
AI agents have quickly become a trending topic in Web3, performing activities such as asset management, data analysis, complex task automation, and many others. However, concerns remain about how users can trust such agents with sensitive information or crucial operations without compromising privacy or security.
A key answer to such concerns is TEEs (Trusted Execution Environments), an essential solution for protected, private and secure computation. The collaboration between DePHY and Phala Network highlights the role of TEEs, which is similar to a safe in a computer. TEEs are an isolated area where data processing takes place securely, ensuring that computations take place privately even when the wider systems are compromised.
Phala Network is developing TEEs, a secure region where AI agents can perform their functions without compromising users’ sensitive data. The above partnership demonstrates Phala Network’s commitment to developing the foundation for trust in AI-powered applications, protecting user-sensitive data, and ensuring accuracy and transparency in Web3.