The convergence of **blockchain technology** and **artificial intelligence (AI)** is rapidly evolving, with leading figures in the industry, such as Ben Goertzel, advocating for a **decentralized approach** to AI development. This perspective echoes sentiments expressed by the **World Economic Forum**, which posits that the **synergies between spatial computing, blockchain, and AI** will significantly transform our digital experiences [source].
In the race for technological supremacy, renowned crypto venture capitalist Marc Andreessen asserts that **control over AI** is a critical priority for both **China and the United States**, intensifying a “**Cold War-style” competition** for tech leadership. AI venture capital emerged as a focal point at the recent **Web Summit Vancouver**—one of the premier tech conferences globally—where I had the unique opportunity to **moderate a panel** delving into the intricate dynamics influencing AI investment.
In this week’s **Crypto Biz** newsletter, we explore **the future of AI** and **crypto**, unpacking significant themes that have emerged in recent months.
Who’s Winning the AI Funding Race?
At **Web Summit Vancouver**, my discussion featured industry experts including **George Mathew** from **Insight Partners**, **Cathy Gao** of **Sapphire Ventures**, and **JP Sanday** from **Menlo Ventures**. Together, we examined the driving forces behind the recent surge in AI funding, particularly the **rapid rise of generative AI** and the **high-potential applications** attracting venture capital interest.
Though **crypto** was not the focal point of our discussion, the insights shared by the panelists painted a vivid picture of the **innovation landscape** anticipated in the blockchain sector. George and JP addressed the implications of the **US-China tech rivalry** on AI infrastructure and **data center development**, while Cathy provided insights on how mounting competition is shaping AI startup valuations.
AI Venture Capital Is Eating Crypto’s Lunch — For Now
Despite the rhetoric surrounding the harmony of AI and crypto, recent data indicates that **venture capital** is currently heavily favoring **artificial intelligence startups**. According to PitchBook, AI companies garnered nearly **60% of global venture capital** in Q1, equating to a staggering **$73 billion** over just three months. A significant chunk—**$40 billion**—came from a single funding round for **OpenAI**, whose **ChatGPT** models now engage over **180 million monthly active users**.
In contrast, **crypto and blockchain startups** attracted a mere **$4.8 billion** in the same period, revealing the shifting tides of investor interest in these sectors [source].
AI Agents Will Soon Conduct Most Economic Transactions
**Sean Neville**, co-founder of stablecoin issuer **Circle**, recently raised **$18 million** to establish an **AI-native financial institution**. His new venture, **Catena Labs**, is backed by **Andreessen Horowitz** and aims to become a fully regulated bank tailored for the **AI-driven economy**.
This innovative concept—though largely underreported—highlights the transformative potential of **AI agents** in finance. Catena Labs posits that **traditional financial systems** are ill-equipped to leverage AI, ultimately stunting the growth of what they term the **agent economy**. “**AI agents will soon conduct most economic transactions**,” Neville emphasized, showcasing the potential of AI to reshape our financial landscape.
Decentralized AI on Solana
Another exciting development in the **blockchain-AI synergy** comes from **Nous Research**, which recently secured **$50 million** in funding to build a **decentralized AI** ecosystem on **Solana**. This round, led by **Paradigm**, values Nous Research at **$1 billion**, with existing support from notable investors like **Delphi Digital** and **North Island Ventures**.
Nous Research is innovating by using Solana’s framework to stimulate community involvement in developing **open-source AI models**, with aspirations to rival industry giants like **OpenAI** and **DeepSeek**. Their novel approach focuses on training **large language models (LLMs)** in a **community-driven** manner, distinguishing them from conventional centralized models [source].
In **Crypto Biz**, we continue to track the heartbeat of the blockchain and crypto landscape, delivering insights straight to your inbox every Thursday.
