DAVID AND GOLIATH: HOW WEB3 CAN COMPETE IN AI

Summary from the TLDR Crypto newsletter

Web3 protocols are positioning themselves to compete in AI by targeting specific niches rather than challenging web2 giants head-on in foundation model development, with a focus on providing compute resources for mid-tier and bespoke models. The strategy leverages Web3's strengths in censorship resistance, transparency, and social verifiability, particularly in areas where decentralized networks offer value. Centralized giants dominate cutting-edge hardware and foundation models, but Web3 protocols can still provide unique value in overlooked areas and pave the way for a more diverse and open AI ecosystem.