Barry Silbert’s Bold Bet on Decentralized AI
Crypto investment mogul Barry Silbert is making waves with his ambitious vision for decentralized artificial intelligence (AI), declaring it to be the “next big era of crypto” that could surpass even the revolutionary impact of bitcoin. In a recent letter to shareholders of his crypto conglomerate, Digital Currency Group (DCG), Silbert expressed his enthusiasm for the emerging field of decentralized AI, highlighting the potential of combining AI innovations with blockchain technology.
Silbert believes this technological fusion may yield greater benefits for humanity compared to the proprietary systems currently being developed by major players like OpenAI. He wrote in the Q4 letter, “We’re moving from the digital ownership of assets to the decentralized ownership of intelligence and the availability of vast decentralized compute resources.” This transformation, he argues, is reminiscent of the early days of bitcoin, not just as a financial revolution but as a significant shift in power dynamics, with crypto serving as the medium for distributing ownership and governance of powerful AI models.
DCG is clearly aligned with this vision, having already invested an impressive $105 million in over a dozen deAI projects. Silbert noted, “We’re excited to ramp this up in 2025,” indicating a strong commitment to this burgeoning sector. He specifically highlighted DCG’s investment in Bittensor, a crypto network dedicated to machine learning and AI applications, describing it as the portfolio company closest to achieving “escape velocity.” He drew parallels between Bittensor’s TAO token and bitcoin, emphasizing the similarities in their foundational concepts. Currently, TAO boasts a market cap of approximately $2.7 billion, a mere fraction compared to bitcoin’s staggering $2 trillion valuation.
Looking ahead, DCG plans to significantly enhance its support for the Bittensor ecosystem. Silbert pointed out that in November, the company launched Yuma, aimed at incubating infrastructure projects for Bittensor. Additionally, Grayscale, another subsidiary of DCG, now offers investment products that provide exposure to the TAO token.
This Q4 letter from Silbert concluded a year characterized by “rebuilding” efforts at DCG, following a tumultuous period triggered by the collapse of FTX, which adversely affected its lending arm, Genesis. Notably, DCG previously owned CoinDesk, having sold the media entity to Bullish in late 2023. Silbert emphasized that all five branches of DCG experienced a “successful 2024,” showcasing the resilience and adaptability of the organization.
Reflecting on the past couple of years, Silbert remarked, “The discipline required has led to enhanced infrastructure, more mature processes, improved governance, and a stronger organization focused on executing our growth initiatives.” The future looks promising for DCG and its ventures into the world of decentralized AI.
