Sam Altman, CEO of Open AI, said the company aims to raise $7 trillion in funding for its text-to-video model, Sora. Sora creates videos based on voice prompts by default. Sam plans to use the funds to design and manufacture chips for the model. What caught the attention of this headline was the fact that its value was 3.5 times the entire market capitalization of cryptocurrency. Additionally, this is of on-the-ground interest in the minds of investors who are imagining how much the industry can grow in the future.
Most importantly, there is speculation that the two different worlds, namely cryptocurrency and AI, will eventually intersect.
Many have previously downplayed the possibility of the two markets merging. The basis for this assumption is that cryptocurrencies grow from decentralization, while AI grows from centralization. Adoption of both is higher than ever. Demand for AI and related technologies is growing, and cryptocurrencies have since been gaining momentum again. Spot Bitcoin ETF Approved Application. There may be Ether ETF If approved by the US SEC, the product could be launched by the end of this year.
What brings them together perfectly is the DeFi space, where financial products and AI chatbots collectively help serve customers.
Cryptocurrencies leverage the concept of incentives to gain an edge in the world. That is, it is known to reward users for more than a single activity. The most basic activity is token staking, which can often generate returns of up to 16%. AI lacks the basic element of incentives. This is something cryptocurrencies can help with.
Notable figures who have previously expressed their views on the intersection of cryptocurrency and AI include Peter Thiel and Ali Yahya.
Peter said AI is communitarian and cryptocurrency is libertarian. Ali, general partner at a16z Crypto, suggested that the two are opposed to each other. Cryptocurrency and AI have continued to drive accessibility. Finding where they meet can fuel the growth of the industry.
As the article is written, AI-related tokens are rising. Fetch.ai’s FET is trading at $1.12, up 13.69% in the last 24 hours. Render’s RNDR is listed at $7.25, up 17.855 over the same period. SingularityNFT’s AGIX is currently at $0.6967, potentially the biggest gainer, with a reported 33.57% increase in value.
The developments that have led to the increase in valuation are Sam Altman’s aggressive fundraising targets and Nvidia’s quarterly reports. The latter turned out to beat projected revenue and EPS numbers. This puts Nvidia ahead of expectations for the first quarter of 2024.