Pantera Invests US$200M in AI, Predicts Universal Adoption

As stated by Pantera Capital ‘s Portfolio Manager, Cosmo Jiang, all cryptocurrency businesses are soon, expected to be AI-related businesses.

He said, “10,15, 20 years from now, everyone will be using AI,” he told DL News, so saying you’re investing in an AI firm “will be as stupid as saying ‘I’m investing in a company that has a website.’”

As the portfolio supervisor at a cryptocurrency hedge fund called Pantera Capital, Jiang mentions that he is constantly on the hunt for ventures that leverage AI to enhance blockchain enterprises or in the other direction.

The crypto investment company, which includes Coinbase, Circle, and Bitstamp in its list of investments, is launching a new US$1 billion fund aimed at infusing new capital into the sector.

According to Jiang, the investment account previously contributed 15% to 20% of its total assets to projects related to AI and blockchain. He expects that the new fund will allocate an even higher figure.

This implies that Pantera, anticipated to finalize the initial round of the fund in 2025, will allocate at least US$200 million towards projects related to artificial intelligence and cryptocurrency in the next ten years.

Jiang mentioned that, although he hasn't made a formal pledge to that amount, “the math would suggest that’s reasonable.”

AI opportunity

Jiang's remarks underscore the increasing excitement surrounding the overlap of AI and blockchain technologies.

Encouraged by projections that the aggregate strength of cryptocurrency and AI could contribute US$20 trillion to the worldwide economy by 2030, crypto investors have poured more than US$98.8 million into this area since its start in 2024.

Artificial intelligence tokens reached a combined market worth of US$26 billion. Bitcoin miners are enhancing their earnings by offering their computing resources to tech behemoths in Silicon Valley to refine their artificial intelligence technologies.

Others are also taking advantage of the trend.

Crypto Hedge fund manager Brevan Howard’s digital assets boss, Gautam Sharma, has said the company is exploring opportunities in the space.

Jiang mentioned that AI and blockchain share a common ancestry, with numerous developers often transitioning seamlessly between the two fields.

For instance, he highlighted Sam Altman, who “started two independent companies” that he “thinks are actually synergistic and need to coexist: OpenAI and Worldcoin.”

What does Pantera look for?

Pantera Capital has barely managed to keep its enthusiasm for the overlap of AI and cryptocurrency under wraps — the company has signed agreements for blog articles and organized discussions, and it has generally expressed its excitement for this area for several months.

When asked what the firm was looking for, Jiang was more evasive.

However, he did mention that he aims to steer clear of “opportunistic entrepreneurs” who “go to college saying they want to be an entrepreneur with zero idea of what they want to build, and they just do whatever is getting the most funding.”

Acknowledging that the AI sector is still in its infancy, Jiang mentioned that he views potential in the way blockchain can equip AI agents with the necessary infrastructure to enhance their capabilities, regardless of the nature of their tasks.

Artificial intelligence agents are systems that operate on their own, engaging in interactions and gathering information to enhance their ability to carry out specific tasks.

He also recognizes the potential of blockchain's ability to assist in the advancement of artificial intelligence by ensuring the accuracy of data. Nexus Laboratories is a company pursuing this approach, a factor contributing to Pantera Capital's recent US$25 million funding in the startup.

Another chance lies in leveraging blockchain's infrastructure to educate artificial intelligence. Bittensor is an example of such a venture, Jiang mentioned.

Pantera Capital has invested in Bittensor but has not disclosed the specific amount it has contributed to the project.

Bittensor operates its blockchain in a way that's similar to other digital currencies. However, it differs from Bitcoin in that its miners verify new blocks by accomplishing various tasks, a significant number of which involve artificial intelligence.

However, Jiang pointed out that those instances are merely the beginning. “There will be a tonne of AI and crypto opportunities.”