March 15, 2024

AI & DePin Revolutionizing the Crypto Space

Cryptocurrency, the virtual currency of the internet, is increasingly becoming intertwined with the capabilities of artificial intelligence (AI) and decentralized physical infrastructure (DePIN). In this symbiotic relationship, the fusion of AI and DePIN is reshaping the crypto space, bringing about novel trends and advancements.

Crypto & AI Convergence

In the vast world of crypto, there's a proliferation of robots and automated processes that often operate in the background of our digital experiences. From crypto arbitrage and MEV bots to social media bot armies and algorithmic content feeds, the evolving machine economy is finding its place within the Web3 ecosystem.

Generative Ventures, led by Lex Sokolin, is at the forefront of investing in companies that explore the convergence of crypto, AI, and fintech. 

on-chain and off-chain Activites & AI's Involvnment

Some elements, like dollar bank deposits, are off-chain, while others, like the decentralized stablecoin DAI, exist on-chain. This duality extends to AI, where there is a potential for AI to operate off-chain but interact with Web3 when needed. This interaction necessitates services resembling oracles for machine intelligence.

Verification of AI outputs is a growing concern, prompting the integration of crypto technologies such as zero-knowledge proofs into machine learning models. This ensures transparency and authenticity, guarding against potential manipulation.

The vision of moving the entire AI stack onto decentralized infrastructure is a futuristic concept. While some teams explore this idea, the challenge lies in determining demand and establishing profitable unit economics. Verifying the correct functioning of AI in a trustless environment remains a critical aspect of this exploration.

The DePIN & AI Revolution

Decentralized physical infrastructure, known as DePIN, operates at a lower level, utilizing coin-protocol incentives. However, it's anticipated that DePINs will transition to function more like decentralized applications (dApps) running on computational blockchains, offering a resource unlock for on-chain crypto-AI.

DePIN not only facilitates the integration of machines into Web3 but also opens avenues for decentralized finance (DeFi) and automated financial products. This could potentially lead to scenarios where self-driving cars download the latest AI models from DePIN networks maintained by decentralized autonomous organizations (DAOs).

Frameworks for managing populations of AI agents with diverse goals are emerging. Projects like Autonolas and Botto showcase the varied applications of generative AI, from trading market participation to producing curated art through DAO incentivization.

The Future Potentials

The scope of AI services varies, from enhancing specific features in applications to envisioning a future where AI platforms like OpenAI's GPT store become the primary interface for accessing machine intelligence applications. However, concerns arise when AI agents are centralized, leading to risks in data, privacy, and finance. The Web3 counterweight to this danger is self-custody, ensuring control and ownership of AI agents through crypto wallets.


The intersection of AI, DePIN, and crypto is a captivating space for entrepreneurs. The possibilities are vast, and as Generative Ventures explores this innovative landscape, the potential for creative breakthroughs remains high. The evolution of AI and DePIN within the crypto sphere continues to unfold, promising a dynamic future for the intersection of these transformative technologies.

March 15, 2024
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