Grayscale Launches New Fund for Decentralized Artificial Intelligence

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• Grayscale has launched the Decentralized AI Fund, investing in AI-focused crypto tokens like Near, Filecoin, and Render to capitalize on emerging AI technologies.
• The new fund to support projects for chatbots, generative images, and other decentralized AI applications, and tackle centralized AI issues.

Grayscale, the investment firm known for its large spot bitcoin ETF (GBTC), launched a new digital asset fund on Wednesday. This fund invests in tokens focused on artificial intelligence (AI).

The Grayscale Decentralized AI Fund LLC aims to give investors access to emerging AI technologies in the crypto world. The fund will adjust its holdings every three months and currently includes several decentralized AI crypto protocols: Bittensor (TAO), Filecoin (FIL), Livepeer (LPT), Near (NEAR), and Render (RNDR). Near, Filecoin and Render are, respectively, the top-weighted assets in the fund.

“The rise of disruptive technologies has created compelling opportunities for Grayscale’s investors since our 2013 inception, and we believe the launch of the Grayscale Decentralized AI Fund provides an opportunity to invest in Decentralized AI at its earliest phase,” said Grayscale’s Head of Product & Research, Rayhaneh Sharif-Askary. 

He also stated that the blockchain-based AI protocols embody the principles of decentralization, accessibility, and transparency, and the Grayscale team feels strongly that these protocols can help mitigate the fundamental risks emerging alongside the proliferation of AI technology.

Furthermore, Grayscale stated that the fund will focus on three areas:

1. Funding projects for chatbots, generative images, and other decentralized AI applications.
2. Tackling centralized AI issues like deep fakes, misinformation, and bot authentication.
3. Supporting AI infrastructure, including GPU computing, data storage, decentralized marketplaces, and other services. 

AI development is mainly led by a few big companies, but many decentralized AI companies and protocols are now emerging. These new players aim to fully use AI’s potential while tackling the problems and risks of centralized control.

Decentralized AI uses blockchain to share ownership and governance of AI services. It allows anyone to access and develop AI technology and aims to make AI more transparent.

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