As artificial intelligence (AI) increasingly intersects with blockchain technology and digital assets, Binance Labs, the venture capital and incubator arm of the cryptocurrency exchange Binance, has announced new investments in AI-focused startups.
Max Coniglio, Binance Labs' investment director, detailed the firm's recent investments and explained the reasoning behind its focus on AI.
On August 14, Binance Labs invested in Sahara AI, a decentralized platform aiming to create an AI ecosystem that facilitates on-chain attribution throughout the AI development cycle. This project also aims to reward participants for operating infrastructure and to develop an autonomous agent, among other objectives.
A day later, on August 15, Binance Labs revealed another investment in MyShell, a decentralized AI ecosystem that allows users to build and share their own AI applications.
Promoting AI-Powered Decentralized Applications
One of the main goals of these investments is to foster the development of AI-powered decentralized applications (DApps), according to Coniglio. He told Cointelegraph that both AI and blockchain technology can thrive in an open-source environment. 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."
He believes that the two technologies enhance one another: AI improves blockchain's user experience and enhances decentralized systems, while blockchain ensures authenticity, fosters collaboration on open-source projects, and meets the computational demands of AI.
However, Coniglio also acknowledged the challenges of building on these emerging technologies. He emphasized the need for blockchain developers and projects to build robust products and sustainable businesses. He noted,
"To succeed, founders must grasp AI technology and possess strong business acumen. New technology alone won’t create large-scale impact."
AI Tokens Surge Ahead of Nvidia Earnings Report
Meanwhile, AI-focused tokens have experienced a surge in the past week as investors await Nvidia's upcoming earnings report. Tokens like Near Protocol, Artificial Superintelligence Alliance (FET), Bittensor (TAO), and Render (RENDER) have outperformed the broader crypto market over the last seven days.
Dan Ives of Wedbush Securities described Nvidia's earnings report as "the most important tech earnings in years," underscoring the company's critical role in the ongoing AI revolution.
