Key Notes
- Electrical Capital co-founder predicts a catalyst occasion for decentralized AI much like Bitcoin’s 2008 monetary disaster second.
- Dragonfly’s managing associate argues that knowledge quantity is nugatory for superior AI fashions, emphasizing high quality over amount as a substitute.
- Decentralized AI methods will at all times be inferior to centralized ones however should supply distinctive worth like censorship resistance.
Franklin Bi, Haseeb Qureshi, and Avichal Garg—three well-known crypto enterprise capitalists—attended the 3rd Annual Summit on Decentralization and AI 2025 hosted by the Berkeley Middle of Accountable Decentralized Intelligence as panelists, bringing beneficial insights to the business’s current and future.
Specifically, Avichal, co-founder of Electrical Capital, drew a parallel to the AI business and the 2008 monetary disaster, as a serious catalyst to the creation and recognition progress of Bitcoin
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, saying decentralized AI is more likely to expertise the same catalyst occasion.
The VC introduced up the query of “What occurs in a world the place all governments on the planet need to management these items [AI]?” urging the viewers to consider what’s “truly significant in that world” to verify “we don’t find yourself in some dystopian place.” In that context, he made the “2008 second” comparability.
“I don’t suppose we’ve had the 2008 second but. 2008 was type of this crystallizing second for the world’s monetary system, and Satoshi wrote the [Bitcoin] whitepaper, however I don’t suppose we’re far off from it. We’re like in 2006. You may sort of see some issues occurring; you aren’t certain the way it cracks, but it surely’s going to crack. (…) I feel we’re roughly in 2006, proper earlier than Bitcoin. One thing goes to crack within the subsequent couple of years, after which we’ll perceive what decentralization is beneficial for,” Avichal Garg, Electrical Capital co-founder, defined.
Avichal defined the significance of “having the technical depth and understanding of what’s coming.” In keeping with him, individuals who handle to accumulate this stage of understanding have a “actually great alternative over the subsequent 10 years.” This understanding, in his opinion, would come from occupied with “these items actually deeply” and occupied with “these items from a which means perspective.”
Different Insights on Decentralized AI by the Panel
Earlier than all that, Haseeb, managing associate at Dragonfly, dropped a bomb on many AI builders and fans: “Your knowledge is nugatory.” In keeping with him, superior LLMs will not be all for knowledge quantity however high quality—a delusion disproven by ChatGPT 4.5, skilled with a big chunk of information however barely overcoming the earlier model. The very best fashions will doubtless pay an costly worth for rigorously chosen info by high minds on the planet, not by airdropping crypto tokens to mass tweets.
Furthermore, Haseeb first launched the concept that governments will try to control and censor AI, regardless of it not having began but. This, as per what he stated, will make decentralized AI “matter in the identical approach that the rise of economic surveillance made Bitcoin matter.”
Scorching take from my panel on decentralized AI at UC Berkeley: Your knowledge is nugatory.
The concept that you may get wealthy promoting your knowledge to coach AI is a fantasy. The frontier is high-quality artificial knowledge, not your dumb tweets.
Second sizzling take: the federal government censorship of AI has… pic.twitter.com/t1uwnIgt7e
— Haseeb ＞|＜ (@hosseeb) August 8, 2025
One other attention-grabbing take from Dragonfly’s managing associate is that decentralized methods will inevitably be inferior to centralized methods in areas like efficiency or effectivity.
“Decentralized AI won’t ever be higher than centralized AI as a result of a centralized AI supplier might simply seize a decentralized mannequin, run it by an API, and say ‘Nice, that is GPT 6.’ So, you might be at all times paying a decentralization tax,” Haseeb Qureshi, Dragonfly managing associate, argued.
On that time, he raises the query of what persons are getting “in change for paying this tax.” Once more, in a parallel to Bitcoin, he believes that the cryptocurrency provides “censorship resistance” in change for paying that tax. Now, the decentralized AI neighborhood wants to search out the reply for a similar query, which he doesn’t consider has been found but.
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Vini Barbosa has coated the crypto business professionally since 2020, summing as much as over 10,000 hours of analysis, writing, and modifying associated content material for media shops and key business gamers. Vini is an energetic commentator and a heavy consumer of the expertise, really believing in its revolutionary potential. Subjects of curiosity embrace blockchain, open-source software program, decentralized finance, and real-world utility.
