VCs turn to crypto to solve AI computing crunch
Generative AI faces financial challenges
The hype surrounding generative AI is starting to subside, and investors are beginning to put pressure on leaders to deliver results. This is due to the fact that generative AI is proving to be an expensive endeavor, with some estimates putting the cost of training a single large language model at over $1 billion.
In response to this financial challenge, some VC investors are turning to crypto technologies as a potential solution. Crypto can be used to create decentralized AI models, which would democratize access to AI and make it more affordable.
Crypto's potential benefits for AI
There are a number of potential benefits to using crypto for AI. First, crypto can help to democratize access to AI by making it more affordable to train and deploy AI models. Second, crypto can help to create more decentralized AI models, which could be more resistant to censorship and manipulation. Third, crypto can be used to create new incentive models for AI development, which could lead to more innovation and collaboration.
Challenges to using crypto for AI
There are also a number of challenges to using crypto for AI. First, the crypto market is still relatively immature and volatile, which could make it difficult to use crypto to fund AI projects. Second, there is a lack of regulatory clarity around crypto, which could make it difficult for businesses to use crypto for AI applications. Third, crypto transactions can be slow and expensive, which could make it difficult to use crypto to power real-time AI applications.
Despite these challenges, the potential benefits of using crypto for AI are significant. As the crypto market matures and regulatory clarity is established, it is likely that crypto will play an increasingly important role in the development of AI.
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