Grayscale launches new fund targeting decentralized AI protocols

The prominent crypto asset manager announced the launch of Grayscale Decentralized AI Fund LLC on July 17, which aims to provide investors with exposure to the rapidly evolving AI industry protocols within the crypto ecosystem.

The fund will be rebalanced quarterly and currently includes a basket of decentralized artificial intelligence (AI) cryptographic protocols, including Bittensor (TAO), Filecoin (FIL), Livepeer (LPT), Near (NEAR), and Render (RNDR).

New Grayscale Decentralized AI Fund

Grayscale’s head of product and research, Rayhaneh Sharif-Askary, highlighted that the latest launch of the Grayscale Decentralized AI Fund will provide an opportunity to invest in decentralized AI in its first phase. The executive added that,

“Blockchain-based AI protocols embody the principles of decentralization, accessibility, and transparency, and the Grayscale team believes these protocols can help mitigate the fundamental risks that arise along with the proliferation of AI technology.”

The fund will target funding projects in three key areas: the development of chatbots, generative imaging and other decentralized AI applications; addressing issues associated with centralized AI, such as deep fakes, disinformation, and authentication checks against bots; and supporting AI-related infrastructure, including GPU computing, data storage, decentralized marketplaces, and various other services.

Risks of centralization in AI

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

In response to continuous technological advances and practical needs, several decentralized AI companies or protocols have emerged designed to utilize the full potential of AI technology.

The asset manager noted that these entities also address some of the limitations and risks associated with centralization. These decentralized AI initiatives, which use blockchain technology to distribute ownership and governance, provide unrestricted access to AI technologies and improve transparency.

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