Grayscale Launches Decentralized AI Fund for Accredited Investors

Asset manager Grayscale has introduced a new crypto fund designed to provide investors with exposure to decentralized artificial intelligence protocols. The Grayscale Decentralized AI Fund, launched on July 17, includes a basket of tokens from Bittensor (TAO), Filecoin (FIL), Livepeer (LPT), Near (NEAR), and Render (RNDR).

Investment Details

The fund is exclusively available to accredited investors, meaning it is not open to the general public. The strategy behind the new fund focuses on three primary categories of decentralized AI assets:

• Decentralized AI Services: Protocols developing AI services such as chatbots and image-generation tools.

• AI Problem Solutions: Solutions addressing centralized AI-related issues, including authenticity checks against bots, deep fakes, and misinformation.

• AI Infrastructure: Protocols building decentralized marketplaces for data storage, GPU computation, 3D rendering, and streaming services.

As of July 16, the fund's asset allocation is as follows:

• TAO: 2.92%

• FIL: 30.59%

• LPT: 8.64%

• NEAR: 32.99%

• RNDR: 24.86%

Decentralized AI and Web3

An increasing number of Web3-based protocols are exploring AI intersections. For instance, Sentient raised $85 million in June to develop an open-source AI platform. Another startup, Sahara, is working on a decentralized AI network for creating autonomous knowledge agents for data analysis.

The SingularityNET ecosystem, focusing on AI decentralization, recently announced a token merger with Fetch.ai and Ocean Protocol to form the Artificial Superintelligence Alliance.

Portfolio Highlights

• Bittensor (TAO): A marketplace where users can create, train, and share AI models, earning rewards for network contributions. It is backed by Pantera Capital.

• Filecoin (FIL): Provides decentralized storage and distribution of large datasets required for AI training and deployment.

• Livepeer (LPT): A decentralized video streaming network built on Ethereum, using AI algorithms for video transcoding, quality enhancement, and editing tasks.

• Render (RNDR): A Solana-based decentralized GPU network used for AI tasks requiring significant GPU resources, such as training deep learning models.

Grayscale's new fund underscores the growing interest and investment in the intersection of decentralized technologies and artificial intelligence, highlighting the potential for innovation in this space.