It’s Not Too Late To Invest In The AI Boom

Few industries offer investors more tantalizing prospects than the artificial intelligence sector, but its incredible growth over the past couple of years may lead some to conclude that they’ve missed the bus. Already, Nvidia’s stock has gained more than 240% since 2022, when the current AI boom kicked off, while other major players like Oracle have made similarly impressive gains. 

But there’s still an incredibly enticing opportunity for those who’re prepared to risk their money on the fate of decentralized AI, a new paradigm that aims to break the stranglehold of today’s biggest players. Ambitious projects like SingularityNET, Ocean Protocol and EcoYield have already made strong inroads, creating a foundation for future growth. 

Many Ways To Invest In Decentralized AI

Although decentralized projects only represent a miniscule segment of the AI industry today, it has already become surprisingly diverse, with numerous opportunities for canny investors willing to take a chance on its growth. 

1: Invest in AI Models

One of the most prominent decentralized AI projects today is SingularityNET, which is building a global marketplace for AI services. Through its platform, developers can create, share and monetize large language models that power generative AI chatbots, AI agents and other AI services. By acquiring AGIX tokens, investors can help to fund these initiatives and play a role in their growth. 

Fetch.ai is similar, having built a marketplace for autonomous economic agents that optimize complex financial processes.

2: Invest in AI Data

Alternatively, Ocean Protocol is focused on the underlying data that fuels AI. Its marketplace allows data owners to tokenize their datasets and make them available to AI developers as a source of training material. The datasets are encrypted using blockchain cryptography so that only developers who pay the required fee in OCEAN tokens can access them. 

For individuals who are looking to monetize their own, personal data, Vana has developed a blockchain-based platform that enables them to share anonymized information from social media applications and fitness devices. Their data will be pooled into community-built datasets that developers can tap into to train AI applications, with tokenized rewards being split among pool contributors. 

3: Invest in AI Infrastructure

In order to lower costs, decentralized AI needs access to cheaper computing infrastructure, and this is what makes EcoYield such an intriguing project. It has built a real-world asset investment platform that fuses renewable energy sources with AI compute and blockchain-based tokenization, in order to secure funding for decentralized data centers. The project uses investor’s cash to build modular, clean energy-powered data centers that are stacked with high-performance GPUs for AI compute. The idea is to lease this computational power to decentralized AI networks at a lower cost than traditional cloud-based data centers and tap into one of the world’s most in-demand resources. 

The way it works is that investors deposit stablecoins into project vaults and receive LP tokens in return. These tokens generate yield in two ways – primarily from customers that rent its GPU compute power, and also from the revenue generated by supplying excess energy to power grids via long-term power purchase agreements. It claims to provide stable and verifiable asset-backed returns of between 25% and 35% APY. 

In addition to depositing stablecoins, investors can also buy EcoYield’s native EYE tokens via its upcoming private sale. Some of the cash from these sales will go into funding its clean energy projects, and by holding EYE tokens, investors gain early access to new project vaults and boosted returns through staking, as well as governance rights.  

Due Diligence

Anyone considering investing in a project needs to know exactly what they’re putting their money into, and that means looking at its goals, the underlying technology, the specific applications or services it intends to provide, and how it all functions. It’s also necessary to investigate the use case and the market potential, ensuring it addresses a real-world need. As part of this, investors should carefully analyze any competitors to identify which platform has the best shot at establishing a strong market presence. 

The tokenomics model also needs careful investigation. Investors should dig into this and ensure that the project’s native token provides clear utility. For instance, Ocean Protocol’s OCEAN token is essential for transacting on its marketplace, while EcoYield’s EYE token provides clear benefits in terms of enhanced yield, early access and governance. 

Finally, remember that it’s never a good idea to put all your eggs in one basket. Don’t go all-in on any one project – instead, try to identify several that have a good chance of delivering promising returns. 

Decentralized AI Is Yet To Take Off

Many people are growing concerned about the immense power of centralized AI providers, and that means there is a real opportunity for decentralized AI to make its mark. More exciting is the fact that it’s still an extremely nascent market segment. At present, there’s only a handful of AI applications and AI agents building on decentralized platforms, but their number is growing fast. 

Just because you missed out on the chance to buy Nvidia’s stock, that doesn’t mean you can’t reap the rewards of the AI boom. It’s a beast of an opportunity that’s set to grow and grow for years to come, and it will provide rich rewards for sharp-eyed investors who can identify innovative new platforms yet to make their mark.

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