American Crypto hedge fund firm Pantera Capital is investing a lot of money into its AI projects, which are worth $200 million.
Pantera Capital, a cryptocurrency hedge fund, intends to allocate $200 million of its $1 billion in financing to develop its Artificial Intelligence (AI) arm.
Pantera Capital’s Portfolio Manager Cosmo Jiang stated in a report from DL News that every cryptocurrency company will soon transform into an AI venture. Consequently, investing in an AI firm will be “as foolish as investing in a company with a website.”
Pantera Capital Seels Blockchain Projects Related to Artificial Intelligence
Among other duties, Jiang’s responsibilities as the company’s portfolio manager include:
- The prospecting for clients.
- Identification of potential investment opportunities.
- The execution of risk management.
In light of the hedge fund’s recently discovered AI enthusiasm, Jiang claimed to be actively seeking projects that utilize AI to enhance blockchain businesses or vice versa.
He also referenced an earlier fund that allocated approximately 15% to 20% of its total capital to blockchain initiatives linked to artificial intelligence. The executive of Pantera Capital anticipates that a more significant proportion of the new fund will be invested. These statistics suggest that over $200 million may be allocated to blockchain projects related to artificial intelligence within the next decade. Jiang attempted to avoid committing to this figure, stating that “the mathematics would indicate that it is reasonable.”
The most recent action taken by Pantera Capital is indicative of the expanding convergence of blockchain technology and artificial intelligence. In recent months, several investors have invested substantial capital in the AI ecosystem. Their investment decision is significantly influenced by the projection that the global economy could experience a $20 trillion boost by 2030 due to the combined influence of AI and crypto.
The integration of AI and blockchain is gaining momentum
BytePlus, a subsidiary of ByteDance, the owner of TikTok, alluded to a potential partnership with Mysten Labs to incorporate AI algorithms into the Sui Blockchain in April. The agreement provides Sui with the chance to consolidate the data of all of its nodes with ByteHouse, a cloud-native data warehousing. This allows for real-time and batch analysis, which enhances performance and ensures quicker delivery for users.
Render (RNDR price data) and other AI tokens outperform numerous digital assets, resulting in a total market value of $26 billion. Bitcoin miners have begun supplementing their income by providing processing power to Silicon Valley titans to train their AI tools, as mining revenue has experienced a sudden decline following the halving of Bitcoin (BTC price data).
Pantera Capital has demonstrated an interest in the integration of blockchain and AI. It is widely recognized that the AI niche is primarily in its infancy. Nevertheless, Jiang perceives an opportunity in the potential of blockchain technology to equip AI agents with the necessary frameworks to complete their desired duties more effectively. This stance fuels the hedge fund’s investment in initiatives leading this movement.
Pantera Capital co-led Nexus Laboratories’ most recent $25 million Series A funding round, which is one of these firms. Pantera Capital also invested in Bittensor (Bittensor price data); however, it declined to disclose the amount of capital it contributed to the project.