As artificial intelligence continues to intersect with blockchain technology and digital assets, the venture capital and incubator arm of crypto exchange Binance has placed investments in AI-focused startups.
Binance Labs investment director Max Coniglio shared the details behind the company’s most recent investments and explained why the crypto firm has been diving into AI.
On Aug. 14, the venture capital firm invested in the decentralized platform Sahara AI. The project will create an AI ecosystem that allows onchain attribution throughout the AI development cycle, reward participants for operating infrastructure and build an autonomous agent, among its many other goals.
In addition, on Aug. 15, Binance Labs announced that it invested in another decentralized AI ecosystem called MyShell. The platform allows users to build their own and share AI apps.
AI-powered decentralized applications
Coniglio told Cointelegraph that one of their goals with the recent investments is to promote decentralized applications (DApps) powered by AI.
The Binance Labs executive believes that both AI and blockchain will flourish if they are open source. Coniglio explained:
“AI and blockchain are a powerful combination. Both thrive on open-source innovation, challenge traditional regulations, and drive significant wealth creation. They complement each other by addressing mutual challenges.”
Coniglio believes that the two technologies align with each other. He said that AI improves blockchain’s user experience and enhances decentralized systems. On the other hand, the executive explained that blockchain ensures authenticity, boosts collaboration on open-source projects and supports the computational needs of AI.
While it looks good on paper, Coniglio highlighted that there are still challenges for those who want to build using these technologies.
The Binance Labs executive said blockchain developers and projects must build solid products and sustainable businesses. “To succeed, founders must grasp AI technology and possess strong business acumen. New technology alone won’t create large-scale impact,” he added.
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AI tokens surge ahead of Nvidia earnings report
Meanwhile, AI-focused tokens have surged in the last seven days as investors anticipate the upcoming earnings report of tech giant Nvidia. AI-focused tokens such as Near Protocol (NEAR), Artificial Superintelligence Alliance (FET), Bittensor (TAO) and Render (RENDER) have seen gains outpace the broader crypto market over the past week.
Wedbush Securities’ Dan Ives described the upcoming event as “the most important tech earnings in years” because he believes Nvidia is the foundation for the AI revolution.
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