Artificial Intelligence and Decentralized Networks: A Convergence
The integration of artificial intelligence (AI) and decentralized networks is on the horizon, promising to revolutionize both fields. In the first part of this three-part series, our spotlight will be on Decentralized Compute Networks (DCNs).
The AI Industry at a Glance
Currently, the AI industry is projected to hit a valuation of $594 billion by 2032. Giants like OpenAI are reportedly raking in revenues to the tune of $1 billion. However, despite its meteoric rise, AI presents its own set of challenges:
- The cost of training foundational large language models (LLMs) is out of reach for most.
- The groundbreaking ML models are the brainchildren of a handful of centralized powerhouses.
- Leading-edge development remains shrouded, with its closed-source and non-transparent nature.
- An accumulation of data risks resulting in a plutocratic system.
- Underlying privacy concerns cannot be ignored.
Enter Blockchains
How do blockchains fit into this puzzle? A market-map by @MessariCrypto highlights three primary solutions:
1. Decentralized Data Networks (to be discussed later)
2. Decentralized Infrastructure Networks (upcoming discussion)
3. Decentralized Compute Networks (today's focus)
DCNs capitalize on the untapped computing resources across the globe, forming peer-to-peer platforms. These platforms promise to balance the scales between demand and supply, all the while keeping prices competitive.
AI's Relentless Need for GPUs
For AI models to function, they lean heavily on GPU power. So much so that demand is consistently overshadowing supply. Case in point: GPT3's training which set OpenAI back by approximately $700,000 daily, with overall costs ranging from $500,000 to $4.6 million.
In response to this insatiable demand and the sky-high costs of GPUs, the decentralized compute network has emerged as a viable solution. Think of it as the AirBNB for GPUs. Here, network participants offer their dormant GPU power to a vast AI network.
Who's leading this charge?
- @rendernetwork boasts of an active GPU network and is making strides in AI rendering.
- @akashnet_ successfully completed its GPU Testnet and is gearing up for its mainnet.
- @golemproject is keenly exploring GPU rentals.
- @RunOnFlux plans to access a massive pool of 200,000 GPUs by the end of 2023.
- Both @gensynai and @bittensor_ are confronting hurdles such as ensuring verifiability and managing a variety of resources. While Gensyn prioritizes parallelization and affordability, Bittensor envisions a cooperative AI model ecosystem.
Not Without Its Hitches
Decentralized networks, while promising, do have a few chinks in their armor:
1. They grapple with latency issues. This makes them apt for tasks that aren't time-sensitive, finding their stronghold in inferencing.
2. While the allure of decentralization narratives is undeniable, especially when considering short-term price movements, the ultimate success hinges on execution and wide-scale adoption. The key question remains: Is this iteration cheaper, swifter, more safeguarded, or efficient? If not, it might not gain traction.
Stay tuned for more insights on DDNs and DINs later this week. If this resonates with you, make sure to engage and follow for more updates.
Artificial Intelligence and Decentralized Networks: A Convergence
The integration of artificial intelligence (AI) and decentralized networks is on the horizon, promising to revolutionize both fields. In the first part of this three-part series, our spotlight will be on Decentralized Compute Networks (DCNs).
The AI Industry at a Glance
Currently, the AI industry is projected to hit a valuation of $594 billion by 2032. Giants like OpenAI are reportedly raking in revenues to the tune of $1 billion. However, despite its meteoric rise, AI presents its own set of challenges:
- The cost of training foundational large language models (LLMs) is out of reach for most.
- The groundbreaking ML models are the brainchildren of a handful of centralized powerhouses.
- Leading-edge development remains shrouded, with its closed-source and non-transparent nature.
- An accumulation of data risks resulting in a plutocratic system.
- Underlying privacy concerns cannot be ignored.
Enter Blockchains
How do blockchains fit into this puzzle? A market-map by @MessariCrypto highlights three primary solutions:
1. Decentralized Data Networks (to be discussed later)
2. Decentralized Infrastructure Networks (upcoming discussion)
3. Decentralized Compute Networks (today's focus)
DCNs capitalize on the untapped computing resources across the globe, forming peer-to-peer platforms. These platforms promise to balance the scales between demand and supply, all the while keeping prices competitive.
AI's Relentless Need for GPUs
For AI models to function, they lean heavily on GPU power. So much so that demand is consistently overshadowing supply. Case in point: GPT3's training which set OpenAI back by approximately $700,000 daily, with overall costs ranging from $500,000 to $4.6 million.
In response to this insatiable demand and the sky-high costs of GPUs, the decentralized compute network has emerged as a viable solution. Think of it as the AirBNB for GPUs. Here, network participants offer their dormant GPU power to a vast AI network.
Who's leading this charge?
- @rendernetwork boasts of an active GPU network and is making strides in AI rendering.
- @akashnet_ successfully completed its GPU Testnet and is gearing up for its mainnet.
- @golemproject is keenly exploring GPU rentals.
- @RunOnFlux plans to access a massive pool of 200,000 GPUs by the end of 2023.
- Both @gensynai and @bittensor_ are confronting hurdles such as ensuring verifiability and managing a variety of resources. While Gensyn prioritizes parallelization and affordability, Bittensor envisions a cooperative AI model ecosystem.
Not Without Its Hitches
Decentralized networks, while promising, do have a few chinks in their armor:
1. They grapple with latency issues. This makes them apt for tasks that aren't time-sensitive, finding their stronghold in inferencing.
2. While the allure of decentralization narratives is undeniable, especially when considering short-term price movements, the ultimate success hinges on execution and wide-scale adoption. The key question remains: Is this iteration cheaper, swifter, more safeguarded, or efficient? If not, it might not gain traction.
Stay tuned for more insights on DDNs and DINs later this week. If this resonates with you, make sure to engage and follow for more updates.
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Artificial Intelligence and Decentralized Networks: A Convergence
Sep 4, 2023
Artificial Intelligence and Decentralized Networks: A Convergence
Sep 4, 2023