Open Source AI and Blockchain Will Define Global Dominance in the Future Since the Generative Artificial Intelligence (GenAI) growth boom took shape in 2023, large technology companies have attempted to centralize control of the space, in an effort to maintain their market dominance.
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Since the Generative Artificial Intelligence (GenAI) growth boom took shape in 2023, large technology companies have attempted to centralize control of the space, in an effort to maintain their market dominance.
Yet while centralization efforts have been successful when it comes to creating near-monopolies or oligopolies in tech verticals such as search and social media, it may not necessarily play out the same way with AI. Stymied by efforts by the U.S. "Big Tech" behemoths that limit their ability to grow and innovate, competitors in the AI and blockchain industries have shunned the United States for sunnier shores.
A good example of this is Binance's growing relationship with the UAE. Already a major employer in the country, the world's largest cryptocurrency company recently received a direct USD 2 billion stablecoin investment from MBX, an investment firm backed by the UAE member state of Abu Dhabi.
Binance CEO Richard Teng commented on the investment, "This investment by MGX is a significant milestone for the crypto industry and for Binance. Together, we are shaping the future of digital finance. Our goal is to build a more inclusive and sustainable ecosystem, with a strong focus on compliance, security, and user protection. Binance remains committed to working with regulators worldwide to establish transparent, responsible, and forward-thinking policies for the crypto industry. Our ongoing investments in security and compliance reinforce our mission to foster a secure and trusted digital financial ecosystem."
Beyond supporting the growth of the UAE's crypto industry, MBX, which has invested heavily into AI startups, is likely seeking to capitalize on innovations that could democratize AI, rendering America's centralized approach to AI futile in the process.
Why AI Decentralization is Inevitable
For years, America's largest tech companies have limited innovation in the blockchain space. Mainly by leaning on political influence to make it difficult for U.S.-based companies to innovate.
"Big Tech" has also been successful in keeping smaller AI competitors at bay, through measures that come at the cost of innovation.
However, the industry's approach to blockchain and AI could start to haunt them, sooner than you think. At least, given how advances in blockchain technology are having a synergistic effect on the development of decentralized, open source AI. DeepBrainChain and SingularityNET are clear examples of how far progress with decentralized, open-source AI is advancing.
Lacking the deep pockets possessed by "Big Tech" and "Unicorn" startups, these projects have nonetheless demonstrated how much can be accomplished, by using distributed computing, incentive mechanisms, and transparent algorithms to make up for a lack of capital.
While many of the China-based startups that have recently made headlines, do not utilize blockchain technology, the rise of platforms like DeepSeek demonstrates how outspending the competition and attempting to restrict access to technology are not "silver bullets" that will help America maintain its leading role in AI innovation.
America Has More to Gain Than Lose from Decentralized AI
Whether America's tech giants like it or not, the future of AI is decentralized. Even if China, given the restrictive nature of its political system, may not necessarily ever fully embrace decentralization, the integration of blockchain and AI technology could enable AI startups elsewhere, such as in Europe and the Middle East, to give market incumbents a run for their money.
In order to stay competitive, it may prove worthwhile for "Big Tech" to embrace open, decentralized AI, sooner rather than later. The integration of blockchain technology could open up the door for a greater number of potential use cases for AI technology, in the healthcare, industrial, and financial services sectors.
Moreover, the United States has more to gain than to lose from the decentralization of AI. Given the country's advantages in the areas of higher education and property rights, the U.S. could become a top jurisdiction for decentralized AI—If it wants to.
Change is Arriving, but More Action Necessary
In recent months, we have already seen promising news with regard to a pivot towards policy and actions supportive of blockchain and AI innovation. Recent changes to U.S. policy towards cryptocurrencies and blockchain technology bode well for attracting blockchain companies and talent previously lost to more pro-growth jurisdictions.
That said, while some change is arriving, more action is necessary for an environment supportive of decentralized AI to arrive in the United States. Such an opportunity for change has arrived, as the Federal Government is mulling changes to its AI policy approach.
However, it's possible that the latest lobbying efforts from "Big Tech" could result in a regulatory approach that once again hinders the development of decentralized AI. The long-term implications of this to U.S. dominance and innovation could be tremendous.
