With how quickly technology is changing these days, the combining of artificial intelligence with decentralized concepts like Web3 is leading to all kinds of new potential. David Attermann from M31 Capital has some really helpful insight for anyone trying to understand this pioneering world emerging at the forefront of innovation.

____________________________________________________

• AI and Web3 fusion attracted $25 billion in investment in 2023, up fivefold from the previous year, signaling a robust growth trajectory.
• The advances in GPUs and zero-knowledge proofs are really paving the way for some amazing new AI capabilities within decentralized technologies like Web3.
• As technology keeps evolving, the underlying infrastructure and middleware will be really important investments, laying the foundation for where AI and decentralized apps are headed.

______________________________________________________________________

The Intersection of AI and Web3: Unveiling Investment Frontiers

Understanding the Ecosystem:

• Generative AI functions on robust GPUs, fulfilling three primary roles: model training, topic-specific fine-tuning, and model application (inference).
• The marketplace segments into general-use GPUs for various tasks, ML-specific GPUs designed for machine learning, and GPU aggregators that offer a blend of hardware and software for an all-encompassing solution.
• Middleware such as zero-knowledge proofs (ZKPs) is vital for securely linking GPU resources to blockchain smart contracts in Web3 applications.

Front-Runners and Innovations:

• Marketplaces like Akash and Render are at the forefront, offering decentralized computing for diverse AI uses.
• Entities like Bittensor and Io.net are carving out their niches in machine learning services and GPU aggregation, respectively.
• Developer tools and platforms, as seen with Fetch.ai, are streamlining the process of building AI-centric applications.

Looking to the Future:

• The types of programs and services that people actually use, which utilize both artificial intelligence and decentralized technologies like Web3, are changing quickly. Gaming and financial stuff are at the forefront right now in putting these powerful combinations into practice for regular users.
• Anticipated advancements in infrastructure and ZKPs are poised to unlock a new generation of AI applications with capabilities beyond our current imagination.

Investor Insights:

• Given the uncertainty in the trajectory of AI application progression, the infrastructure and middleware segments currently present more secure investment prospects.
• The ongoing demand for GPU capacity, ZKP advancement, and developer resources forecasts a robust outlook for the Web3 AI infrastructure and middleware sectors.

Make sure you are at the forefront of this dynamic technological arena by subscribing to our newsletter. Gain access to the latest insights and exclusive updates in your area of interest, be it AI, blockchain, or beyond. Do not miss your opportunity to stay informed—become a part of our knowledgeable community now.