Grayscale Investments Unveils New Decentralized AI Fund

Grayscale Investments Unveils New Decentralized AI Fund

Grayscale Investments, the world’s largest crypto asset manager, has announced the launch of the Grayscale Decentralized AI Fund LLC (“the Fund”). This new fund aims to provide investors with exposure to emerging protocols within the artificial intelligence sector of the crypto ecosystem.

Fund Highlights

• Exposure to Decentralized AI Protocols: The Fund includes a basket of Decentralized Artificial Intelligence (AI) crypto protocols such as Bittensor (TAO), Filecoin (FIL), Livepeer (LPT), Near (NEAR), and Render (RNDR).
• Quarterly Rebalancing: The Fund will rebalance quarterly to maintain its diversified exposure to the AI sector.

Why Decentralized AI?

Decentralized AI leverages blockchain technology to distribute ownership and governance over AI services, ensuring decentralization, accessibility, and transparency. This approach helps mitigate risks associated with centralized AI, such as deep fakes and misinformation. The Fund focuses on three primary categories of Decentralized AI assets:

1. Decentralized AI Services: These include chatbots and image generation services.
2. Solutions to Centralized AI Problems: These address issues like authenticity checks against bots and misinformation.
3. Infrastructure for AI Development: This category encompasses decentralized marketplaces for data storage, GPU computation, 3D rendering, and streaming services.

Fund Components as of July 16, 2024

• Bittensor (TAO): 2.92%
• Filecoin (FIL): 30.59%
• Livepeer (LPT): 8.64%
• Near (NEAR): 32.99%
• Render (RNDR): 24.86%

Grayscale’s new fund offers investors a strategic entry point into the evolving world of Decentralized AI, positioning them to capitalize on the growing integration of AI and blockchain technologies.