AI & Crypto collide? OpenAI seeks $7T for Sora AI
Sam Altman, the Chief Executive Officer of Open AI, said that they are targeting to raise $7 trillion in funding for Sora, a text-to-video model. Sora basically creates a video based on the verbal prompt. Sam plans to utilize the funds to design and manufacture chips for the model. What has sparked attention to the headline is the fact that the value represents 3.5 times the total market cap of cryptocurrencies. Also, it has field interest in the minds of investors, who are now imagining the extent to which the industry could grow in the times to come.
Most importantly, there is speculation that the two different worlds will eventually intersect—that of crypto and AI.
Many have previously downplayed the possibility of both markets ever coming together. The grounds for this assumption are that cryptos thrive on decentralization while AI grows on centralization. The adoption of both is higher than earlier. There is a growing demand for AI and related technology, plus cryptos are gaining momentum again following the approval of Spot Bitcoin ETF applications. There could be an Ether ETF product by the end of this year, too, if the US SEC gives it the green light.
Bringing them together perfectly is the DeFi sphere, wherein financial products and AI chatbots collectively help to serve the customer.
Crypto gains an edge in the world by leveraging the concept of incentivization. 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 a yield as high as 16%. AI lacks the fundamentals of incentivization. That is something that crypto can help with.
Notable personalities who have previously expressed their viewpoints on the intersection of crypto and AI are Peter Thiel and Ali Yahya.
Peter had stated that AI was communalism while crypto was libertarian. Ali, a general partner at a16z Crypto, had suggested that both opposed each other. Crypto and AI have continued to facilitate accessibility. Finding a point where they meet could fuel the growth of the industry.
AI-related tokens are rising as the article is being drafted. Fetch.ai’s FET is exchanging hands at $1.12, with a jump of 13.69% in the last 24 hours. RNDR by Render is listed at $7.25, a surge of 17.855 during the same time window. SingularityNFT’s AGIX is potentially the biggest gainer of all, with a reported rise of 33.57% in its value, which is currently at $0.6967.
Developments that have caused a surge in their valuation are Sam Altman’s aggressive target for raising funds and Nvidia’s quarterly report. The latter has shown beating predicted revenue and EPS figures. That has put Nvidia at the forefront of beating the estimates for the first quarter of 2024.
