AI and Crypto Collide? OpenAI Seeks 7T USD to Acquire Sora AI

Open AI CEO Sam Altman said that their goal is to raise 7 trillion USD for the text-to-video model Sora. Sora basically creates videos based on verbal prompts. Sam plans to use this fund to design and manufacture the chips for the model. What caught people’s attention about the headline is that the value is equivalent to 3.5 times the total market cap of cryptocurrencies. Moreover, it also sparked the interest of investors, who are now imagining the future growth of the industry.

Most importantly, some people speculate that the two different worlds will eventually intersect – cryptocurrencies and artificial intelligence.

Many people previously downplayed the possibility of the two markets merging. The reason for this assumption is that cryptocurrencies thrive on decentralization, while artificial intelligence grows on centralization. Both have higher adoption rates than before. The demand for artificial intelligence and related technologies is increasing, and cryptocurrencies gained momentum again after the spot Bitcoin ETF application was approved. An Ethereum ETF product may also be launched by the end of this year if approved by the US Securities and Exchange Commission.

What perfectly combines them is the DeFi field, where financial products and artificial intelligence chatbots work together to provide services for customers.

Cryptocurrencies gain an edge in the world by using the concept of incentives. That is, there are multiple activities that reward users. The most basic activity is token staking, which can usually generate a return rate of up to 16%. Artificial intelligence lacks the foundation of incentives. This is something that cryptocurrencies can help with.

Famous figures such as Peter Thiel and Ali Yahya have expressed their views on the intersection of cryptocurrencies and artificial intelligence.

Peter once said that artificial intelligence is communism, while cryptocurrencies are liberalism. Ali, a general partner of a16z crypto, said that the two are opposed to each other. Cryptocurrencies and artificial intelligence continue to promote accessibility. Finding their intersection point can drive the development of the industry.

As the article was drafted, tokens related to artificial intelligence were rising. Fetch.ai’s FET traded at 1.12 USD, up 13.69% in the past 24 hours. RNDR by Render’s listing price was 7.25 USD, soaring 17.855 USD in the same time period. SingularityNFT’s AGIX might be the biggest gainer among them, as its value reportedly rose by 33.57%, currently at 0.6967 USD.

The developments that led to its valuation soaring were Sam Altman’s aggressive fundraising goal and Nvidia’s quarterly report. The latter’s revenue and earnings per share data exceeded expectations. This put Nvidia in the lead in terms of exceeding expectations for the first quarter of 2024.