The intersection between generative artificial intelligence and Web3 is one of the most active areas of research and development in crypto circles over the last few months. Decentralized compute, zero-knowledge AI, smaller foundation models, decentralized data networks, and AI-first chains are some of the recent trends that aim to enable Web3-native rails for AI workloads.
What challenge are we referring to? Nothing other than the funding challenges of open-source generative AI.Despite the recent level of innovation in decentralized generative AI, the gap with centralized AI tech is increasing rather than decreasing. Many people agree that blockchains represent the best technology alternative to the increasing centralized AI control of large tech platforms. However, the adoption challenges for decentralized AI platforms are monumental.
All decentralized AI trends rely on a healthy open-source generative AI ecosystem, yet that ecosystem might not be as healthy as it seems.In the last couple of years, we have witnessed an explosion of innovation in open-source large generative AI as an alternative to platforms such as OpenAI/Microsoft, Google or Anthropic. Meta has become a surprising undisputed champion of open-source generative AI with the release of the Llama models.
Making money with open source has historically been hard, and making money with open-source generative AI is hard at AI scale. As a result, open-source generative AI is experiencing a massive funding crunch that can create a serious gap with the AI incumbents.The capital formation primitives of crypto seem like one of the few viable alternatives to address the funding crunch in generative AI.
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