- Musk sparked a surge in AI tokens when he announced a 25% stake in xAI for X Corp shareholders, along with testing a Grok chatbot.
- The AI token is also responding to the ouster of Sam Altman from OpenAI.
- Altman is now heading to Microsoft.
Artificial intelligence (AI)-focused tokens saw significant gains over the weekend, driven by major developments in the AI sector.
Traders have shown strong confidence in the long-term growth potential of these tokens due to notable announcements from industry leaders.
Elon Musk’s revelations spark euphoria
Tech entrepreneur Elon Musk announced that shareholders of X Corp, a conglomerate with diverse businesses, will hold a 25% stake in his newly public AI venture, xAI.
The excitement surrounding this reveal was amplified as xAI began testing against the Grok chatbot, resulting in numerous clone tokens being created.
Sam Altman’s ouster from OpenAI
In a separate development, reports circulated earlier this weekend that OpenAI founder (and ChatGPT developer) Sam Altman may be returning to the company’s board of directors. These reports have led to a surge in AI cryptocurrencies.
AI Coin remained strong after confirmation that Altman had headed to Microsoft to lead AI research and would not be returning to OpenAI. His position at OpenAI was given to Emmett Shear, former CEO and co-founder of Twitch.
Today I received a call inviting me to consider a once-in-a-lifetime opportunity: to become interim CEO. @Open AI. After consulting with my family and thinking about it for a few hours, I accepted. I recently resigned from my position as CEO of Twitch due to the birth of my child.
— Emmet Shear (@eshear) November 20, 2023
AI token market has seen significant gains
The AI cryptocurrency market has responded positively to the above developments with notable performance across various tokens.
Bittensor’s TAO posted a 7.7% gain on Monday, adding to an incredible 83% rally over the past week.
Render’s RNDR, Ocean Protocol’s OCEAN, Fetch AI’s FET, and SingularityNet’s AGIX are also bullish and have outperformed major cryptocurrencies such as Bitcoin. However, smaller AI cryptocurrencies such as Synesis One (SNS), LimeWire (LMWR), and nuco.cloud (NCDT) are leading the AI token rally with price surges of 97%, 56%, and 35%, respectively.
The broader AI token market cap saw an impressive 10% surge on Monday compared to a 1.7% increase in the global cryptocurrency market cap.
The recent surge in AI tokens demonstrates the growing importance of the sector, similar to the impact of gaming applications and decentralized finance (DeFi) tokens in previous market cycles. However, the resilience of AI tokens in the face of corporate developments while uncertainty persists indicates continued market interest in the potential of artificial intelligence technology.