Pantera Capital, a crypto hedge fund, has announced plans to launch a new $1 billion fund, with a substantial portion dedicated to artificial intelligence (AI) ventures.
Meanwhile, this move reflects the growing intersection of AI and blockchain technologies, an area Pantera is keen to explore.
According to DLNEWS, Pantera Capital, one of the most famous crypto funds, is raising a new fund of $1 billion. The fund said that all cryptocurrency companies will become AI companies in the next 10 to 20 years. It has invested 15% to 20% of its capital in AI-related blockchain…
— Wu Blockchain (@WuBlockchain) June 19, 2024
Cosmo Jiang, portfolio manager at Pantera Capital, has indicated that over $200 million of the new fund will be allocated to AI-related projects. This decision aligns with Jiang’s belief that AI will become ubiquitous in the coming decades, making the distinction between AI and non-AI companies increasingly irrelevant.
Comparing the future ubiquity of AI to the current necessity of having a company website, Jiang stated,
“Ten, 15, 20 years from now, everyone will be using AI.”
Moreover, an earlier fund dedicated approximately 15% to 20% of its capital to AI-adjacent blockchain projects. The new fund, set to close its first round in 2025, is expected to surpass this figure, potentially investing over $200 million into such projects through the decade.
AI and Blockchain Synergy
Jiang emphasized the natural synergy between AI and blockchain technologies, noting that many developers and innovators are active in both fields. He cited Sam Altman, founder of OpenAI and Worldcoin, as an example of an individual who sees AI and blockchain as complementary sectors. This crossover is expected to drive substantial innovation and investment opportunities.
Investors increasingly recognize the combined potential of AI and blockchain, with projections suggesting that their integration could add $20 trillion to the global economy by 2030. Since the beginning of 2024, over $98.8 million has been invested in this sector, reflecting growing confidence and interest.
Investment Criteria and Opportunities
Pantera Capital actively seeks projects that integrate AI to enhance blockchain businesses or use blockchain to support AI development. Jiang outlined several criteria for potential investments, emphasizing a preference for projects with clear, practical applications over speculative ventures. He cautioned “opportunistic entrepreneurs” who chase trends without a solid foundation.
One area of interest is using blockchain to provide secure, verifiable data for AI development. For instance, Nexus Laboratories, a startup focused on this application, recently received $25 million in Series A funding co-led by Pantera. Another promising project is Bittensor, which utilizes blockchain to train AI models. Unlike traditional cryptocurrencies, Bittensor’s miners validate new blocks by completing AI-related tasks, offering a novel approach to blockchain mining.
Pantera’s strategy is part of a broader trend within the crypto and investment communities. Other major players, such as Brevan Howard’s digital assets division, are also exploring AI blockchain opportunities. This growing interest is reflected in the increasing number of AI tokens, which currently have a total market value of $26 billion.
Furthermore, integrating AI into blockchain is becoming a revenue stream for Bitcoin miners, who now provide processing power to train AI tools for Silicon Valley firms. This dual-purpose approach will drive further collaboration and innovation between the two sectors.
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