DePHY, the decentralized off-chain network that enables the efficient functioning of the DePIN network, announced a strategic partnership with Phala Network, a decentralized cloud platform that provides secure, scalable, and privacy-preserving computing services.
This partnership enables us to integrate DePHY's distributed infrastructure (which acts as a bridge between DePIN and the AI network) into Phala Network's distributed cloud computing platform, enhancing Phala's AI computing operations.
We are proud to announce our strategic partnership with Phala Network @PhalaNetwork. DePHY provides the core technology that accelerates the transition to a full-fledged GPU TEE cloud.
🔗 Trust Layer: Where Verifiability Meets Integrity
In the case of decentralized services… pic.twitter.com/wZV5JjhFyB
— DePHY (@dephynetwork) November 7, 2025
Why this partnership is important to Phala Network
Phala Network uses a decentralized network to enable secure and private AI computation on Web3. Leverage a TEE (Trusted Execution Environment) to ensure data confidentiality, secure execution, and computation verifiability. Its hybrid infrastructure and zero-trust model make it a reliable solution for keeping sensitive information (data) safe while working with AI agents and interacting with the blockchain.
Even though AI innovation continues to evolve rapidly, computing access remains stagnant in the Web3 environment. Today, most AI infrastructure companies (like Phala Network and many others) are grappling with high GPU costs, lack of access to high-performance devices, and reliance on monopolies to manage cloud computing services.
Phala Network partnered with DePHY to address some of these challenges. By incorporating Phala Network's confidential GPU computing system into DePHY's DePIN framework, Phala now has access to affordable, on-demand compute power.
The AI agent revolution: The power of TEE integration
AI is advancing faster than the Web3 technology infrastructure can keep up. GPU scarcity, high cost, and monopoly are major challenges that stall growth and progress. DePHY's integration of technology solutions can help solve these real-world problems. This comes as Phala Network continues to develop its TEE network.
AI agents are quickly becoming a trending topic in Web3, performing activities such as asset management, data analysis, and automation of complex tasks. However, concerns remain about how users can trust such agents to perform sensitive information and critical operations without compromising their privacy or security.
A key answer to these concerns is the Trusted Execution Environment (TEE), an essential solution for protected, private, and secure computing. The partnership between DePHY and Phala Network highlights the role of TEEs, which is similar to a vault inside a computer. A TEE is an isolated area where data processing occurs securely, ensuring that computations remain private even if the broader system is compromised.
Phala Network is developing TEE, a secure realm where AI agents can perform functions without risking users' sensitive data. The above partnerships demonstrate Phala Network's commitment to ensuring Web3 accuracy and transparency while protecting users' sensitive data and developing a foundation of trust for AI-powered applications.

