Grayscale’s Decentralized AI Fund launched July 2024, boldly rejecting tech giants like OpenAI and Google in favor of blockchain-based AI projects. The fund holds tokens including Bittensor (TAO), NEAR Protocol, and Render—betting these decentralized alternatives can challenge Silicon Valley’s AI monopoly. With $1.19 million under management and quarterly rebalancing, it’s targeting distributed computing power over centralized control. The fund’s philosophical stance represents a calculated gamble against Big Tech’s dominance, and there’s more brewing beneath the surface.
While tech giants battle over AI dominance, Grayscale took a different route. The investment firm launched its Decentralized AI Fund on July 2, 2024, thumbing its nose at centralized monopolies. Instead of betting on Big Tech, they’re backing crypto projects that want to democratize artificial intelligence.
Grayscale’s Decentralized AI Fund ditches Big Tech monopolies, betting instead on crypto projects that democratize artificial intelligence infrastructure.
The fund holds a basket of tokens focused on decentralized AI infrastructure. We’re talking Bittensor (TAO), NEAR Protocol, Render, Livepeer, Filecoin, and The Graph. Each serves a specific purpose in the decentralized AI ecosystem. Bittensor creates incentivized machine learning networks. NEAR provides scalable infrastructure for AI workloads. Render offers decentralized GPU services for compute-heavy tasks.
With assets under management sitting at roughly $1.19 million as of late July 2025, this isn’t exactly BlackRock territory. The fund’s net asset value per share was $5.44, though it recently dropped 2.33% in a day. Volatility comes with the territory in crypto.
Grayscale charges a hefty 2.50% expense ratio for managing this portfolio. That’s steep, but accredited investors apparently don’t mind paying for exposure to this niche sector. The fund doesn’t distribute income—everything gets reinvested or reflected in the net asset value.
The investment strategy involves quarterly rebalancing based on market conditions and project developments. Early 2025 saw them add Livepeer while selling other assets. They use CoinDesk index methodologies to maintain systematic portfolio construction. No random moonshot picks here. The fund’s latest rebalancing occurred as of July 3, 2025, maintaining its focus on decentralized AI infrastructure.
What makes this fund interesting is its philosophical stance. While everyone else chases OpenAI and Google, Grayscale explicitly excludes centralized AI giants. They want decentralized infrastructure, open-source collaboration, and distributed computing power. As one of Grayscale’s more than 30 crypto investment products, this AI fund reflects the firm’s commitment to diversified digital asset exposure.
Filecoin handles decentralized storage—because AI needs massive data availability without corporate gatekeepers. The Graph provides indexing services for blockchain data. These aren’t glamorous picks, but they’re fundamental infrastructure.
The fund represents one of the earliest institutional-grade vehicles for AI-focused crypto exposure. Its quarterly updates influence how other investors think about this space. Whether this bet on decentralized AI pays off remains to be seen. But Grayscale clearly believes the future belongs to distributed networks, not Silicon Valley boardrooms.
