Grayscale Investments is making waves with its new product, the Grayscale Decentralized AI Fund. Before we dive into the details, we want to remind investors that this new fund is for accredited investors only. The fund promises exposure to the growing space of decentralized artificial intelligence (AI) protocols. The fund includes tokens from Bittensor (TAO), Filecoin (FIL), Livepeer (LPT), Near (NEAR), and Render (RNDR) and aims to capture the growth of AI in the cryptocurrency world.
The rise of decentralized AI
AI and blockchain are two of the most disruptive technologies today, and Grayscale's new fund leverages the intersection of the two. These protocols offer services such as chatbots, image generation, authenticity checking, decentralized data storage, and GPU computing.
Reyhaneh Sharif Askari, Head of Product and Research at Grayscale, highlighted the potential of these protocols to manage the risks of rapid advances in AI. She emphasized that blockchain-based AI protocols embody decentralization, accessibility, and transparency. Grayscale aims to maximize benefits while balancing risks.
Inside the AI Crypto Basket
The Grayscale Decentralized AI Fund is spread across several promising protocols: According to data on Grayscale’s website, as of July 16, the fund’s composition is Near (NEAR) 32.99%, Filecoin (FIL) 30.59%, Render (RNDR) 24.86%, Livepeer (LPT) 8.64%, and Bittensor (TAO) 2.92%.
Each token in this basket plays a unique role in the decentralized AI ecosystem: Bittensor, backed by Pantera Capital, provides a marketplace for AI models; Filecoin provides decentralized storage for AI training datasets; Livepeer improves video streaming quality and transcodes video on the Ethereum blockchain; and Render, built on Solana, provides the GPU power needed for intensive AI tasks.
Grayscale's vision for the future
Barry Silbert, founder and CEO of Grayscale's parent company, Digital Currency Group, expressed his excitement about the new fund on social media, emphasizing that Grayscale aims to fully leverage technology. The fund is part of a broader strategy to address the centralization of AI development by decentralizing ownership and governance through blockchain.
This launch is just the beginning; it signals growing interest in decentralized AI solutions. Other notable projects include Sentient, which raised $85 million for its open-source AI platform, and Sahara, which is building a decentralized AI network for autonomous knowledge agents. The SingularityNET ecosystem also announced a merger with Fetch.ai and Ocean Protocol to form the Artificial Superintelligence Alliance.
AI and its impact on cryptocurrencies
Grayscale's new fund offers a unique investment opportunity and highlights the growing synergy between AI and blockchain. As these technologies evolve, the potential of decentralized AI to democratize access to AI services and increase transparency becomes more apparent.
With a net asset value (NAV) per share of $9.87 and fund holdings of approximately $551,238.97, the Grayscale Decentralized AI Fund is likely to attract significant attention from accredited investors looking to capitalize on the next wave of technological innovation.
