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Today, we’re introducing Forge, a system for enterprises to build frontier-grade AI models grounded in their proprietary knowledge. 🌎 Forge bridges the gap between generic AI and enterprise-specific needs. Instead of relying on broad, public data, organizations can train models that understand their internal context embedded within systems, workflows,...

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DeepSeek-R1 shattered the assumption that performant AI models must be built closed source with loss-leading computational costs. This is the reality that Web3 x Crypto firms have been waiting for, leading me to believe that the most performant AI models in the future will be built on-chain. Resource Requirements DeepSeek R1 (671 billion parameters), which took over a billion dollars, 2,000 Nvidia H800 GPUs, and over 55 days, beat benchmarks held by OpenAI’s o1 mode (near 2 trillion parameters)l, which required hundreds of billions of dollars to develop along with over 16,000 advanced GPUs. The idea that AI models must be closed-source and have loss-leading computational costs to succeed is crumbling. The Existing Decentralized AI Narrative AI x Crypto projects believed that crowdsourced, public, decentralized AI would eventually create better models than their centralized counterparts. This had thus far not been true, as the highest-performing models had come from closed-source companies like OpenAI and Anthropic. Crypto x AI companies have adapted to this by specializing in infrastructure rather than model-building. For example, GPU marketplaces like , The Render Network, io.net, and Exabits have developed sustainable revenues. Companies that allow users to share their network bandwidth like touch grass and Gradient have found their niche in supplying services, like distributed web scraping, to web2 clients. Storage networks like Arweave Ecosystem, Filecoin, and Ocean Protocol have also done well by being the platform on which these projects are built. Supply networks have flourished because of their ability to tailor their cheaper and more scalable services to off-chain customers. Renewed Focus Now that GPU and financial resources are no longer limitations to creating quality AI models, web3 AI companies can focus on replicating DeepSeek’s effectiveness while offering new benefits like modality, user ownership, censorship resistance, privacy, and more. Pantera Capital has funded companies in this space like and Sentient that believe they can match or exceed the performance of traditional AI companies while offering additional services or benefits. , for example, is building a platform where anyone can monetize AI models, data sets, and applications in a collaborative space. Users can permissionlessly train models manually, provide training data, and create tailored AI models with no-code tools. They are only able to cater to all these stakeholders (AI developers, users, resource providers) because everything is tied to their native Sahara blockchain. We invested in them precisely for this reason. The Future of AI will be built with Web3 Infrastructure I believe that supply-side projects will continue to grow, while consumer-facing projects can begin competing with web2 competitors by taking advantage of their ability to build networks that invite community involvement. and Sentient, for example, have begun setting up systems for users to train models based on the users’ expertise. These platforms will allow users to pick and choose the data and integrations to whatever they are applying the model towards. Sahara already has over 780,000 users on their waitlist while Sentient has over 1 million interactions. In the near future, I believe that the most performant AI models will be built on-chain. For the full blog post, read my newsletter.

paul.nft

32,461 views • 1 year ago