Grayscale Unveils New Fund Targeting Decentralized AI Projects in the Crypto Market

• Grayscale’s new fund targets decentralized AI, including projects like Bittensor, Filecoin, and Render, with quarterly rebalancing.
• The fund addresses AI centralization challenges, focusing on chatbots, deep fakes, and AI infrastructure like GPU computation.
• Grayscale’s initiative promotes blockchain-based AI for transparency and security, aiming for broader adoption and investment in decentralized AI.

Grayscale has announced the launch of a new fund specifically targeting decentralized artificial intelligence (AI) projects. The Grayscale Decentralized AI Fund LLC, which will rebalance quarterly, aims to drive investment in AI within the crypto market. This new fund includes notable projects such as Bittensor (TAO), Filecoin (FIL), Livepeer (LPT), Near (NEAR), and Render (RNDR).

The fund will concentrate on three main areas: developing decentralized AI services like chatbots and image generation, addressing challenges of centralized AI such as deep fakes and misinformation, and supporting AI-related infrastructure like GPU computation and data storage.

Decentralized AI Advantages

Decentralized AI projects aim to address the limitations and risks associated with centralization in AI development. By using blockchain technology, these projects distribute ownership and governance over AI services, making them more accessible and transparent. 

This approach contrasts with the current AI sector, which is dominated by a few major companies. Rayhaneh Sharif-Askary, Grayscale’s head of product and research, emphasized the potential of decentralized AI to offer compelling investment opportunities. 

According to Sharif-Askary, the blockchain-based AI protocols align with the principles of decentralization, accessibility, and transparency. The Grayscale team believes these protocols can help mitigate the fundamental risks emerging alongside the proliferation of AI technology.

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Details of the Fund

The fund’s composition includes assets with specific weightings: Bittensor (TAO) at 2.92%, Filecoin (FIL) at 30.59%, Livepeer (LPT) at 8.64%, Near (NEAR) at 32.99%, and Render (RNDR) at 24.86%. The Grayscale Decentralized AI Fund is available for accredited investors and aims to provide exposure to the performance of protocols focused on decentralized AI.

The launch of this fund is a step towards integrating decentralized AI into the broader technology and investment space. By focusing on decentralized solutions, Grayscale is addressing the growing need for transparency and security in AI development, potentially paving the way for more widespread adoption of blockchain-based AI technologies.

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