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Web3 is losing the battle to decentralize AI.

July 1, 2025
in Altcoin
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A blockchain-driven future for AI remains to be potential. Nevertheless it’s quickly slipping out of attain as Huge Tech pads its lead.

Photograph by Possessed Images by way of Unsplash

This submit is customized from w3w, my e-newsletter about rising know-how over on Substack. To obtain it in your inbox each Sunday, together with extra headlines from across the web about web3, AI, and extra, subscribe right here. 😊

In concept, the potential intersection of web3 and AI is definitely intriguing. However in truth, real-world implementation has superior so little that the window of alternative for web3 to have an effect could also be closing.

So says DeFi entrepreneur Jesus Rodriguez in a current essay for CoinDesk. The co-founder and CEO of IntoTheBlock writes:

“AI innovation is compounding quickly, and Web3 has been a passive observer. Not one of the main AI milestones — unsupervised pretraining, superior fine-tuning, retrieval-augmented era, reasoning engines, or agentic frameworks — have concerned Web3 architectures in a significant approach.

“As every new launch compounds on the final, the limitations to catching up turn out to be steeper. All vital tooling, platforms, and infrastructure for constructing frontier fashions are at the moment centralized. With out pressing, coordinated efforts to alter this trajectory, Web3-AI can be left many years behind in a discipline that advances in months.”

As if on cue, the headlines that broke within the days proper after Rodriguez printed this warning solely served to underscore his level:

Meta — unmatched poster baby for the evils of centralized tech — introduced it might purchase a 49% stake within the startup Scale AI for $14.3 billion.Disney sued Midjourney, calling the AI picture generator “a bottomless pit of plagiarism.”

Ouch.

, it’s virtually as if the web economic system is crying out for some native approach for folks to immutably doc identification, authorship, and provenance of mental property. Particularly as generative AI proliferates, it might even be useful if this technique have been to allow simple digital funds, licensing, and assortment of royalties on IP.

Or we might all simply preserve suing one another, working up authorized payments, and see how that turns out.

Yeah. Certain. Let’s do the latter.

Web3 is dropping the battle to decentralize AI. was initially printed in The Capital on Medium, the place individuals are persevering with the dialog by highlighting and responding to this story.



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