Pantera Capital Allocates $200 million to AI Projects


Pantera Capital intends to allocate $200 million from a $1 billion funding allocation to AI initiatives over the next decade.

Pantera Capital, a cryptocurrency hedge fund, intends to allocate $200 million of its $1 billion in financing to the development of its Artificial Intelligence (AI) subsidiary.

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 that has a website.”

Among other duties, Jiang’s responsibilities as the company’s portfolio manager include the prospecting for clients, identification of potential investment opportunities, and the execution of risk management. Jiang claimed to be actively seeking projects that utilize AI to enhance blockchain businesses or vice versa, in light of the hedge fund’s recently discovered AI enthusiasm.

Additionally, he referenced an earlier fund that allocated approximately 15% to 20% of its initial capital to blockchain initiatives that were associated with artificial intelligence. Pantera Capital’s executive anticipates that the new fund will invest a greater proportion of its assets. According to these figures, blockchain initiatives associated with artificial intelligence may receive over $200 million in the next decade. Jiang attempted to avoid committing to this figure, stating that “the mathematics would indicate that it is plausible.”

The latest effort by Pantera Capital is indicative of the expanding convergence of blockchain technology and artificial intelligence. The AI ecosystem has received a substantial quantity of funding from a number of investors in the past few months. Their investment decision is significantly influenced by the projection that the global economy could experience a $20 trillion boost by 2030 as a result of the combined influence of AI and crypto.

BytePlus, a subsidiary of ByteDance, the proprietor of TikTok, alluded at 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 bulk analysis, which enhances performance and ensures quicker delivery for users.

Render (RNDR price data) and other AI tokens are outperforming 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 an abrupt decline following the halving of Bitcoin (BTC price data).

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