Grayscale’s New Decentralized AI Fund: Unlocking the Potential of Artificial Intelligence

Introduction

The prominent crypto asset manager, Grayscale, recently announced the launch of the Grayscale Decentralized AI Fund LLC on July 17th. This fund aims to provide investors with exposure to protocols in the rapidly evolving artificial intelligence (AI) sector within the crypto ecosystem.

About the Fund

The Grayscale Decentralized AI Fund will rebalance quarterly and currently features a basket of decentralized AI crypto protocols. These protocols include Bittensor (TAO), Filecoin (FIL), Livepeer (LPT), Near (NEAR), and Render (RNDR).

Grayscale’s Take on Decentralized AI

Grayscale’s Head of Product & Research, Rayhaneh Sharif-Askary, highlighted the significance of this new fund, stating that it will provide an opportunity to invest in decentralized AI at its earliest phase. According to Rayhaneh, the blockchain-based AI protocols embody the principles of decentralization, accessibility, and transparency, and the Grayscale team believes that these protocols can help mitigate the fundamental risks emerging alongside the proliferation of AI technology.

The fund will focus on financing projects in three key areas:

• Development of Chatbots, Generative Images, and Other Decentralized AI Applications: The fund will support the creation and development of decentralized AI applications that can enhance the user experience and provide innovative solutions to real-world problems.
• Tackling Issues Associated with Centralized AI: The fund will address the limitations and risks associated with centralized AI, such as deep fakes, misinformation, and authenticity checks against bots. This includes supporting projects that aim to identify and mitigate these risks.
• Supporting AI-Related Infrastructure: The fund will focus on supporting AI-related infrastructure, including GPU computation, data storage, decentralized marketplaces, and other services that are essential for the development and growth of AI technology.

In its official press release, Grayscale highlighted the motivation behind the debut of the fund as the fact that artificial intelligence is largely centralized to a handful of notable companies that are core to driving the technology’s development and mainstream adoption.

Grayscale noted that the continued technological advancements and practical needs have led to the emergence of several decentralized AI companies or protocols. These entities aim to utilize the full potential of AI technology while addressing the limitations and risks associated with centralization.

The asset manager emphasized that these decentralized AI initiatives, which utilize blockchain technology to distribute ownership and governance, provide unrestricted access to AI technologies and improve transparency.

The Grayscale Decentralized AI Fund is a pioneering initiative that aims to provide investors with exposure to the rapidly evolving AI sector. By focusing on decentralized AI protocols and supporting projects that address the limitations and risks associated with centralization, the fund aims to unlock the potential of AI technology and drive its mainstream adoption.

• What is the Grayscale Decentralized AI Fund?

  The Grayscale Decentralized AI Fund is a fund that aims to provide investors with exposure to protocols in the rapidly evolving artificial intelligence sector within the crypto ecosystem.

• Which decentralized AI crypto protocols are currently included in the fund?

  The fund currently features a basket of decentralized AI crypto protocols, including Bittensor (TAO), Filecoin (FIL), Livepeer (LPT), Near (NEAR), and Render (RNDR).

• What are the key areas of focus for the fund?

  The fund will focus on financing projects in three key areas: development of chatbots, generative images, and other decentralized AI applications; tackling issues associated with centralized AI; and supporting AI-related infrastructure.

• Why is the fund necessary?

  The fund is necessary because artificial intelligence is largely centralized to a handful of notable companies that are core to driving the technology’s development and mainstream adoption. The fund aims to address the limitations and risks associated with centralization and unlock the potential of AI technology.