The intersection of cryptocurrency and artificial intelligence (AI) is experiencing transformative changes, according to prominent venture capitalists Anand Iyer of Canonical Crypto and Kelvin Koh of Spartan Group. Their insights were shared during the Consensus Hong Kong 2026 event, where they described the current phase as one of reevaluation and focused innovation within the realm of decentralized AI.
Current Trends in Decentralized AI
Iyer and Koh classify today’s environment as a “post-hype” era, indicating a shift away from speculative investments toward applications that prioritize practicality and user needs. Iyer commented on this transition, stating, “We’ve gone through a period of overheating,” and emphasized the necessity of discovering where the genuine strengths lie in the market.
Critique of GPU Investments
The duo criticized what they perceive as excessive investments in GPU marketplaces. They argue that attempts to create decentralized alternatives to large AI models, such as those by OpenAI or Anthropic, are not aligned with current market realities. Koh highlighted a stark contrast in necessary capital when comparing crypto opportunity to what the AI space requires, noting it as “night and day.”
Redefining Focus for Startups
In this evolving climate, Iyer and Koh advocate for startups to concentrate on building targeted, comprehensive solutions. These tools should identify specific problems and develop layered models that encompass computing and data concerns. Iyer pointed to innovative startups that bypass costly Software as a Service (SaaS) tools by employing AI to create custom internal systems within days.
Importance of Data Ownership and Market Advantages
Both investors stressed the growing significance of data ownership and regulatory advantages as pivotal elements for competitive differentiation in the market. This focus aligns with the broader trend away from speculative ventures towards more sustained, practical approaches to AI integration.
Advice for Founders Seeking Capital
For entrepreneurs looking to secure funding, Koh provided practical advice, highlighting a significant shift from last year’s expectations. “Twelve months ago, having a wrapper around ChatGPT was sufficient. That is no longer the case,” he stated, underscoring the need for more substantial and innovative offerings in the current investment landscape.
This transition in decentralized AI reflects broader themes within the tech industry, emphasizing sustainability, data-centric strategies, and the necessity for genuine value creation. As the sector matures, the focus is likely to shift towards applications that not only attract investment but also meaningfully address the needs of users and businesses alike.
