Grayscale Announces the Launch of Decentralized AI Fund

Grayscale Investments, the world’s largest crypto asset manager, today announced the creation and public launch of the Grayscale Decentralized AI Fund LLC (“the Fund”). The Fund aims to provide investors with exposure to protocols in the burgeoning artificial intelligence sector within the crypto ecosystem.

About Decentralized AI

Artificial intelligence is largely centralized to a handful of notable companies that are core to driving the technology’s development and mainstream adoption. However, many decentralized AI companies or protocols have emerged in response to continued technological advancements and practical needs.

Decentralized AI leverages blockchain technology to distribute ownership and governance over AI services, enables permissionless access to use or build AI technology, and seeks to increase AI’s transparency. This is achieved by building Decentralized AI services, such as chatbots and image generation services, and solutions to centralized AI-related problems, including authenticity checks against bots, deep fakes, and misinformation.

The Fund

The Fund includes three primary categories of Decentralized AI assets:

• Protocols building Decentralized AI services, such as chatbots and image generation services
• Protocols building solutions to centralized AI-related problems, including authenticity checks against bots, deep fakes, and misinformation
• Infrastructure and resources critical to AI technology development, including decentralized marketplaces for data storage, GPU computation, 3D rendering, and streaming services

The Fund currently includes a basket of Decentralized Artificial Intelligence (AI) crypto protocols, including Bittensor (TAO), Filecoin (FIL), Livepeer (LPT), Near (NEAR), and Render (RNDR), with a total weighting of 2.92%, 30.59%, 8.64%, 32.99%, and 24.86%, respectively, as of July 16, 2024.

Investment Strategy

The Fund will rebalance quarterly, providing investors with a diversified portfolio of Decentralized AI assets. As of July 16, 2024, the Fund’s components and weightings are subject to change.

About Grayscale Investments

Grayscale enables investors to access the digital economy through a family of future-forward investment products. Founded in 2013, Grayscale has a proven track record and deep expertise as the world’s largest crypto asset manager. Investors, advisors, and allocators turn to Grayscale for single asset, diversified, and thematic exposure.

FAQs

Q: Who is eligible to invest in the Grayscale Decentralized AI Fund?

A: The Fund is available for eligible accredited investors only.

Q: How do I learn more about the Grayscale Decentralized AI Fund?

A: Please reach out to info@grayscale.com for additional information or with any questions.

Q: Are the shares of the Grayscale Decentralized AI Fund listed on a stock exchange?

A: Grayscale intends to attempt to have Shares of new products quoted on a secondary market. However, there is no guarantee that we will be successful.

Q: What are the risks associated with investing in the Grayscale Decentralized AI Fund?

A: As with any investment, there are risks involved. The value of the digital assets held by the Fund can fluctuate greatly and may result in a loss of some or all of the investor’s initial investment.

Conclusion

The Grayscale Decentralized AI Fund provides investors with a unique opportunity to gain exposure to the rapidly growing field of decentralized artificial intelligence. With its diversified portfolio of Decentralized AI assets and quarterly rebalancing, the Fund is poised to capitalize on the potential of this emerging technology.