TL;DR
- Grayscale Investments has launched a new fund exclusively focused on decentralized artificial intelligence for accredited investors.
- The fund includes decentralized AI protocols such as Near, Filecoin, Render, Livepeer, and Bittensor, and will be rebalanced quarterly.
- The fund’s goal is to capitalize on the growth of these protocols, which promote decentralization, accessibility, and transparency in the development of AI technology.
Grayscale Investments has launched a new fund focused on decentralized artificial intelligence, seeking to provide accredited investors with exposure to protocols that merge blockchain and artificial intelligence. The fund is named Grayscale Decentralized AI Fund. It is available exclusively to accredited investors and aims to capitalize on the growth of protocols that merge the potential of these two technologies.
Grayscale’s new fund comprises a set of decentralized artificial intelligence protocols. It includes Near (NEAR) at 32.99%, Filecoin (FIL) at 30.59%, Render (RNDR) at 24.86%, Livepeer (LPT) at 8.64%, and Bittensor (TAO) at 2.92%. The fund’s composition will be rebalanced quarterly to stay updated and competitive according to trends in the crypto market.
Grayscale emphasizes that its new fund focuses on three main categories of decentralized AI assets: protocols building decentralized AI services, those addressing centralized AI-related problems, and infrastructure and resources critical to AI technology development.
Rayhaneh Sharif-Askary, the firm’s Head of Product & Research, highlighted that blockchain-based protocols embody the principles of decentralization, accessibility, and transparency, and the company is convinced that these protocols can help mitigate the fundamental risks that arise with the proliferation of AI technology.
Grayscale Seeks to Capitalize on the AI Boom
The launch comes amid growing interest in decentralized alternatives to conventional AI technologies. Last month, decentralized AI projects received a strong boost when Nvidia, a publicly traded chip maker, reported better-than-expected quarterly earnings, which fueled interest in the sector.
Although fundraising and valuations have decreased compared to last year’s significant AI boom, there is still a considerable amount of venture capital flowing into decentralized AI projects. Earlier this month, Sandeep Nailwal, co-founder of Polygon and a principal contributor to Sentient, announced that Sentient had raised $85 million in a round led by Peter Thiel’s Founders Fund.
Nailwal stated that the rapid advancement of AI has the potential to transform every aspect of our lives, but the concentration of power in the hands of a few centralized entities presents significant risks. By building an open platform for general AI (AGI) development, Nailwal expressed hope that the benefits of AI would be distributed equitably and its development would align with the interests of humanity as a whole.
