🌵 The Intersection of Crypto & AI 🌵

Big Brain Breakdown

Market Metrics

Total Crypto Market Cap: up 0.2% to $2.758T
Total AI Sector Market Cap: down 5.2% to $19.7B

Top Movers (24hrs):

📈 Zignaly (ZIG): up 15.2% to $0.09197
📈 enqAI (ENQAI): up 15.2% to $0.03834
📈 Forta (FORTA): up 9.2% to $0.2431

🧠 Big Brain Breakdown

Welcome back to another Big Brain Breakdown, where we help you understand the fundamentals of blockchain AI projects so you can stay ahead of the herd and invest in projects poised for outperformance.

Today we're venturing into a particularly dark corner of the web—AI girlfriends.

Our world is currently in a strange phase. Our lives have never been better, with access to limitless information, significant advances in healthcare, and huge reductions in global poverty levels over the past century.

But at the same time, for many people it seems like an awful time to be alive. There is a mental health epidemic, life expectancy is declining in some western countries and many people are struggling to afford rent despite working 3 full time jobs.

As our world becomes increasingly digital and dystopian, it seems that more and more people are avoiding reality in favor of a virtual existence. From gambling and gaming to memecoins and porn, the allure of instant gratification and escapism is proving too strong for many to resist. And now, with the rise of AI companions, even our relationships are being digitized and commodified.

It's no secret that dating apps have exploded in popularity over the past few decades, with millions of people using them to find love, or at least a quick hookup. But as our society becomes more isolated and socially awkward, it seems that even the minimal effort required to swipe right is becoming too much for some. Enter AI-powered girlfriends (and boyfriends) – the perfect solution for those who have given up on human interaction altogether.

For the lonely and porn-addicted young men out there, the idea of an AI companion that can be customized to their exact specifications is undoubtedly appealing. No more awkward first dates or rejection – just a virtual partner who will always be there, ready and willing to fulfill their every desire. It's no surprise that the concept of AI-powered partners is gaining traction.

Google searches for "AI Girlfriend" have more than doubled over the past year, indicating a surge in interest.

It's a sad indictment of our society that this is even a thing, but hey, at least they can choose their girlfriend's hair color and (lack of) clothing, right?

At this point you might be wondering, how does this have anything to do with AI x crypto?

Well, companion AI models are a data privacy nightmare.

Imagine a faceless corporation had your deepest desires, insecurities and uncensored thoughts recorded and stored for later use.

Well, thats the reality for anyone using centralized companion AI models, and it is a serious concern. Multiple centralized AI companion models have been found to have thousands of inbuilt tracking mechanisms for mining their users data. These people can look forward to hyper-targeted ads, higher medical insurance and a whole host of other data-leak issues for the rest of their lives. Whoo!

This is where decentralized AI models come in – by leveraging blockchain, these models can offer verifiable privacy and give users greater control over their data. Projects like Lush.ai are already building in this space, offering users the ability to interact with AI companions in a secure and transparent manner.

While it is apparent that the current users of these centralized AI companions probably don’t care about their privacy, the next wave of users likely will. The people who are currently on the edge of using an AI companion, but haven’t because of privacy concerns, could be the next wave of users that fuel the wave of adoption for private, decentralized models.

The Opportunity

What do decentralized projects building on blockchains love to launch?

That’s right. Tokens.

10 years ago, if you had the chance to invest in Match Group, the company behind Tinder and other popular dating apps, you likely would’ve jumped at it. Today it is valued at almost $9 billion and peaked a lot higher.

You may soon have access to a similar opportunity.

The demand for companion AI models is evident in their usage rates. A study by A16Z revealed that companion AI models engage users far more frequently than other types, boasting over 20 times the average sessions per user per month compared to content creation AIs. This high level of engagement demonstrates the addictive nature of these companions.

Take CarynAI, for example, a voice chatbot that lets users interact with a virtual version of influencer Caryn Marjorie. At $1 per minute, CarynAI generated $72,000 in its first week, showing the lucrative potential of personalized AI companions. Similarly, Snapchat's chatbot saw 150 million people send over 10 billion messages within just two months of its launch, underscoring the massive user interest and engagement in companion AI technologies.

Decentralised companion AI projects will most certainly start to appear en masse. Lush.ai is one we are already aware of, and it appears the project already has users testing a beta version of their AI model “Jenny”. The project already has a token too.

So there you have it – a glimpse into the dystopian world of AI companions. While it's easy to mock and condemn those who would rather spend their time with a virtual partner than a real human being, it's important to remember that this is a reflection of the society we've created. As we continue to prioritize convenience and instant gratification over genuine human connection, it's hardly surprising that some are opting out altogether.

But who knows – perhaps AI companions will prove to be a positive force in the long run, providing comfort and companionship to those who might otherwise be alone. Or maybe they'll just lead us further down the rabbit hole of degeneracy, as we abandon the real world in favor of a virtual one where everything is perfect and nothing hurts.

In Other News

🟠 Microsoft released VASA-1, an advanced video generation model demonstrating incredible realism and liveliness.

🟠 0G Labs, a data availability layer for onchain AI, launched its testnet.

🟠 Taoshi announced the Request Network, a marketplace allowing Subnet owners to offer access to their data and services.

🟠 Zignaly launched ZIGChain, a Cosmos chain, and a $100M Ecosystem Development Fund to incentivize growth and adoption.

🟠 Node AI announced that its GPU fleet now exceeds 100 units, increasing resources for developers.

Gen AI of the Day

🌇 This looks like a chill place to take a stroll.