DeAI as crypto's endgame: compute, agents and autonomous economies
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Argues centralized AI is bottlenecked by compute demand and big tech control, and that crypto supplies the trust and coordination layer. Says DePIN compute (io.net, Akash) is a viable supply, with most value accruing to the agent and application layer.
Key claims
Decentralized GPU networks can be up to 90% cheaper
Largest value capture is in the application layer on the open stack
Crypto's purpose is the coordination layer of a global intelligence network
DeAI = Crypto Endgame
AI is the most powerful technology humankind has seen to date, and it will usher in a new era, where AI dominates all verticals of our life, from enterainment to finance and healthcare. It will fundamentally change how we perceive and interact with the (both digital and phyiscal) world.
But while vision and impact are huge, centralized AI is broken. Legacy infra is already cracking under the massive compute demand that arises from an AI industry in hyper-growth, and the centralization of control poses major risks.
AI is being monopolized by a big tech cartel, which throttles innovation by locking it inside opaque, expensive, and censorable walled gardens.
DeAI is the obvious solution to this systemic risk.
But WTF even is DeAI?
DeAI refers to the decentralization of various layers of the AI stack.
One prominent example in this context is leveraging crypto-economic incentives and onchain coordination to orchestrate a global network of underutilized GPUs ("dark compute") to provide AI infra that is instantly scalable, resilient, permissionless, and up to 90% cheaper.
However, DeAI goes far beyond the compute layer alone, and includes other crucial infra components like attributable data marketplaces, verifiable inference and AI verification layers, as well as intelligence networks, and more (stay tuned for an in-depth post on this).
Aligned with @MTorygreen's prominent macro thesis, I would even go as far as saying that the purpose of crypto was never just to be money or a more open alternative to the traditional financial system.
It was, is, and remains to build the essential trust and coordination layer of a global intelligence network that scales securely, ensuring that technology remains an open and fair frontier.
AI is the disembodied of this intelligence, while crypto enables the autonomy and provides the economic rails for it to operate and scale.
The best example here is the compute layer of the stack.
The limitations of centralized infra are already becoming obvious. As (open-source) models improve, the bottom-up demand for flexible and affordable compute is skyrocketing, and centralized clouds can't serve this sector.
That's where DePINs enter the picture, and where infrastructure like the before-mentioned GPU networks are crucial. The maturation of such decentralized compute networks (see @ionet or @akashnet), proves that these systems are not just a promise of a fancy future, but rather already becoming viable, high-performance alternatives to centralized providers.
They represent the "supply" that has arrived just in time to meet the new wave of open-source "demand". Yet, the core investment opportunity isn't just in providing cheaper GPUs. The true exponential value will imo be captured in the application layer built on this new, open stack.
More specifically, DeAI infra enables the creation of autonomous agents, able to leverage decentralized identity solutions, digital payment rails, and compute networks to operate independently, engage in economic activity, and create real value.
DeAI isn't just another trend. It's the foundation for the next wave of autonomous economies, a global megatrend that is relevant far beyond our little Web3 bubble.
Want to learn more?
Highly recommended to check out the article below by @MTorygreen which goes into more depth on this.
also reflagging that @BigJayce7 helped me with the also included overview visual. Drop him a follow chads.
QUOTING @MTorygreen
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