The first crypto AI was created 6 years ago. During the year 2024, they have undergone a strong enthusiasm. Yet recently, the trend is not good.
In 2023 and especially in 2024, crypto projects related to artificial intelligence have experienced a very strong increase. Indeed, the possibility of seeing decentralized AI models seems to appeal to both investors and individuals. Given the concentration of these capabilities within a few large companies, the narrative of decentralized AI is alluring. This narrative has prompted many people to take positions on AI projects anticipating promising future developments.
On January 20, 2025, the Chinese company Deepseek released its Open Source AI. The special feature of this project is that the cost of its development was particularly low. Obviously, with China (and Russia) one must always be careful because the official figures communicated are rarely accurate. This announcement has however demolished the narrative in place in the crypto world. Yes small businesses can quickly create AI models. Decentralized AI projects do not seem to be the only ones that can compete with large groups in this race. Young start-ups can also do it. Many well-known investors have also criticized the amounts invested in this sector. Many consider these amounts to be far too high in relation to the progress that results.
The lack of real opportunities with AI projects is also a point to watch. Many projects boast of getting into AI to attract money to them but in fact, it’s just marketing. It is highly likely that some crypto AI projects will succeed in developing decentralized AI protocols, but it is also very likely that many projects will not succeed in making their models successful.
