Decentralized AI is in a trough but real opportunities are emerging, crypto VCs say

Finance Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Decentralized AI is in a trough but real opportunities are emerging, crypto VCs say Moving away from overhyped GPU marketplaces and large AI model alternatives towards purpose-built, full-stack solutions is the goal. By Francisco Rodrigues | Edited by Jamie Crawley Feb 11, 2026, 3:15 p.m. Make us preferred on Google What to know : The crypto-AI intersection is entering a quieter, more selective phase with a shift towards utility-driven applications, crypto VCs said. Moving away from overhyped GPU marketplaces and large AI model alternatives towards purpose-built, full-stack solutions is the goal. Founders need to offer more than just a wrapper on existing AI models like ChatGPT. The intersection of crypto and artificial intelligence (AI) has entered a quieter, more selective phase, according to two prominent venture capitalists. Anand Iyer of Canonical Crypto and Kelvin Koh of Spartan Group described the current climate as a post-hype moment for decentralized AI protocols, with capital and talent shifting toward more focused, utility-driven applications during Consensus Hong Kong 2026 . STORY CONTINUES BELOW Don't miss another story. Subscribe to the Crypto Daybook Americas Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms & conditions and privacy policy . “I think we’re in the trough right now,” said Iyer, whose San Francisco-based firm backs early-stage infrastructure and applications built on decentralized networks. “We went through a frothy period. Now it’s about figuring out where the real strength lies.” Both Iyer and Koh criticized what they see as overinvestment in GPU marketplaces and attempts to build decentralized alternatives to large AI models like those from OpenAI or Anthropic. The capital required, Koh noted, is “night and day” compared to what’s available in crypto. Instead, they see potential in purpose-built, full-stack solutions, tools that start with a specific problem and build down to the model, compute, and data layers. Iyer pointed to startups skipping expensive SaaS tools and using AI to build custom internal systems in days. “Speculation won’t drive product anymore,” he said. “We have to think about users first.” Both investors emphasized the importance of proprietary data, regulatory advantages, or go-to-market edges as new forms of competitive moats. For founders looking to raise capital, Koh offered blunt advice: “Twelve months ago, it was enough to have a wrapper on ChatGPT. That’s no longer true.” Consensus Hong Kong 2026 Crypto Artificial Intelligence AI More For You Recapping day 1 of Consensus Hong Kong By Nikhilesh De | Edited by Sheldon Reback 2 hours ago Hong Kong is looking to build its digital assets economy, its leaders said on stage. What to know : Hong Kong officials used the opening day of Consensus Hong Kong to signal a push into digital assets, pledging stablecoin licenses as soon as next month and new rules for perpetual contracts. Speakers at the conference framed crypto as central to emerging trends such as an AI-driven “machine economy,” with Financial Secretary Paul Chan envisioning AI agents transacting onchain. Market voices including Anthony Scaramucci and Tom Lee urged investors to look past recent price declines, with Scaramucci reiterating a $150,000 bitcoin target tied to U.S. legislation and Lee calling current conditions a buying opportunity rather than a time to sell. Read full story Latest Crypto News BlackRock takes first DeFi step, lists BUIDL on Uniswap as UNI jumps 25% 19 minutes ago Analysts react as Robinhood slumps 10%, with slowdown in crypto trading weighing on results 33 minutes ago CoinDesk 20 performance update: index trades 2.5% lower as all constituents decline 57 minutes ago Bithumb admits to ‘serious flaws’ that left internal systems vulnerable to potential sabotage 1 hour ago Ethena-backed suiUSDe stablecoin goes live on Sui with $10 million yield vault launch 1 hour ago U.S. added stronger than expected 130,000 jobs in January, with unemployment rate falling to 4.3% 1 hour ago Top Stories Recapping day 1 of Consensus Hong Kong 2 hours ago Tokenization still at start of hype cycle, but needs more use cases, specialists say 4 hours ago MrBeast's finance bet could become the new generation's Schwab, Robinhood, Tom Lee says 6 hours ago As bitcoin extends declines, industry figures say it's time to buy 2 hours ago Crypto's banker adversaries didn't want to deal in latest White House meeting on bill 16 hours ago Aviva Investors to tokenize funds on XRP Ledger in Ripple partnership 3 hours ago