The convergence between blockchain technology and artificial intelligence is intensifying, with key industry figures like Ben Goertzel convinced that AI should be decentralized.This convergence was even highlighted by the World Economic Forum, which argued in 2024 that Synergies between spatial computing, blockchain and AI will augment our experiences and increasingly guide our interactions with the digital world.Prominent crypto venture capitalist Marc Andreessen believes control over AI is a top strategic priority for China and the United States, as the two nations enter a Cold War-style race for technological dominance.AI venture capital took center stage at Web Summit Vancouver, one of the worlds leading tech conferences.
I had the opportunity to moderate a panel exploring the core dynamics shaping AI investment at the base layer.In this weeks Crypto Biz newsletter, we dive into the future of AI and crypto, unpacking major themes that have emerged over the past several months.Concluding my panel at Web Summit Vancouver, titled Winning the AI funding race.Whos winning the AI funding race?At Web Summit Vancouver, I moderated a panel on AI venture capital funding featuring George Mathew of Insight Partners, Cathy Gao of Sapphire Ventures and JP Sanday of Menlo Ventures.We explored why the so-called sudden surge in AI funding has deeper roots, the rapid rise of generative AI and the high-potential use cases VCs are watching closely.
While crypto was left off the agenda, the emerging trends highlighted by these VCs paint a clearer picture of innovation expected in the blockchain industry.George and JP also discussed the US-China tech rivalry and its implications for AI infrastructure and data center development.
At the same time, Cathy shared insights on how intensifying competition is impacting AI startup valuations.AI venture capital is eating cryptos lunch for nowFor all the talk about AI and crypto convergence, venture capital has strongly favored artificial intelligence startups recently.In April, PitchBook data showed that AI startups attracted nearly 60% of global venture capital in Q1, totaling $73 billion over the three-month period.A significant portion of that $40 billion came from a single funding round for OpenAI, whose ChatGPT models now boast over 180 million monthly active users.Separate data from CryptoRank revealed that crypto and blockchain startups amassed $4.8 billion in first-quarter funding.AIs share of global VC deals has risen significantly since 2021.
Source: PitchBookCircle co-founder: AI agents will soon conduct most economic transactionsSean Neville, co-founder of stablecoin issuer Circle, has raised $18 million for a new venture aiming to build an AI-native financial institution.The newly launched Catena Labs is backed by Andreessen Horowitzs crypto-focused venture arm and aspires to become a fully regulated bank for the AI-driven economy.While firms like McKinsey and EY have highlighted the transformative potential of AI agents in finance, the concept of AI-native financial institutions remains largely underreported.Catena Labs argues that traditional financial systems are unprepared and resistant to AI, hindering the growth of the agent economy.AI agents will soon conduct most economic transactions, Neville added.Decentralized AI on SolanaAnother notable development in the blockchain-artificial intelligence nexus came from Nous Research, which recently secured $50 million to build decentralized AI on Solana.The funding round, which was led by Paradigm, valued Nous Research at $1 billion, according to Fortune.
The startups previous backers include Delphi Digital, North Island Ventures and Distributed Global.Nous leverages Solana to incentivize user participation in developing its open-source AI models, aiming to rival major large language models like OpenAI and DeepSeek.Unlike traditional centralized approaches, Nous is training its LLMs in a decentralized, community-driven manner a strategy that sets it apart, according to Paradigm partner Arjun Balaji.Crypto Biz is your weekly pulse on the business behind blockchain and crypto, delivered directly to your inbox every Thursday.