Vitalik Buterin, a key figure in the crypto industry and a founder of Ethereum, recently shed light on a critical challenge hindering the advancement of artificial intelligence technology. In a message on his Farcaster channel, Buterin addressed the question of whether the race for dominance on the AI market is primarily driven by financial gain.
While acknowledging the role of money in the field, Buterin made a crucial distinction: the motivations of venture capitalists who fund artificial intelligence projects often differ significantly from those of the project founders themselves.
He suggests that many creators and scientists are genuinely passionate about AI development and content with achieving substantial, but not necessarily astronomical, returns.
Therefore, the Ethereum founder highlights a major roadblock – the scarcity of investors willing to accept lower potential returns. Venture capitalists, who typically manage large investment funds on behalf of others, often prioritize projects with the potential for exponential growth, aiming to turn millions into billions.
This focus on high returns can create a funding gap for promising AI projects with founders who prioritize progress over exorbitant profits.
Current state of AI sector
The world of artificial intelligence is indeed a heated battleground right now. Tech giants like Google and Microsoft are pouring billions into research, developing groundbreaking models for natural language processing and computer vision.
AI start-up funding rebounded in Q1, 2024, with $12.2 billion invested in 1,166 deals, a quarter-on-quarter increase. However, OpenAI’s colossal $10 billion-plus funding round from Microsoft in Q1 last year stands as the biggest investment yet.
