Barry Silbert, the influential crypto investor and founder of Digital Currency Group (DCG), is making a bold move into decentralized artificial intelligence (deAI). He believes this emerging sector could surpass even Bitcoin in significance, ushering in a new era of crypto innovation.
In a recent letter to DCG shareholders, Silbert expressed strong confidence in deAI—an initiative combining blockchain technology with AI advancements. He argues that decentralized AI could yield greater benefits for society than the proprietary models being developed by tech giants like OpenAI.
From Digital Ownership to Decentralized Intelligence
“We’re moving from the digital ownership of assets to the decentralized ownership of intelligence and the availability of vast decentralized compute resources,” Silbert wrote in his Q4 shareholder letter, reviewed by CoinDesk.
This vision draws parallels to Bitcoin, the leading cryptocurrency that initially propelled Silbert to prominence. But rather than disrupting money, deAI aims to decentralize power by distributing the ownership and governance of AI systems through blockchain mechanisms.
DCG is backing its vision with significant investments. The company has already funneled $105 million into more than a dozen deAI projects, with plans to scale up funding efforts in 2025.
Bittensor: The Flagship of DCG’s DeAI Portfolio
Silbert specifically highlighted DCG’s investment in Bittensor, a blockchain-based AI network, as one of its most promising ventures. According to him, Bittensor’s TAO token shares similarities with Bitcoin, potentially positioning it for substantial growth.
While TAO’s market capitalization currently sits at $2.7 billion—a fraction of Bitcoin’s nearly $2 trillion valuation—it has shown strong potential. DCG is doubling down on its commitment to Bittensor’s ecosystem, recently launching Yuma, a company dedicated to incubating Bittensor infrastructure projects. Additionally, DCG subsidiary Grayscale now offers investment products providing exposure to TAO.
A Rebuilding Year for DCG
Silbert’s Q4 letter also reflected on DCG’s recovery after facing significant challenges, particularly following the FTX collapse, which impacted its lending division, Genesis. In late 2023, DCG sold its stake in CoinDesk to Bullish as part of its restructuring efforts.
Despite past turbulence, Silbert noted that all five of DCG’s subsidiaries had a successful 2024. “The discipline required over the last couple of years has resulted in enhanced infrastructure and more mature processes, improved governance, and a stronger organization focused on executing on our growth initiatives,” he stated.
As DCG gears up for 2025, its deep dive into decentralized AI could mark the beginning of a new chapter in crypto history. Whether deAI will achieve the transformative impact Silbert envisions remains to be seen, but one thing is clear: the fusion of AI and blockchain is gaining serious momentum.
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