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

Moving distant from overhyped GPU marketplaces and ample AI exemplary alternatives towards purpose-built, full-stack solutions is the goal.

Feb 11, 2026, 3:15 p.m.

The intersection of crypto and artificial quality (AI) has entered a quieter, much selective phase, according to 2 salient task capitalists.

Anand Iyer of Canonical Crypto and Kelvin Koh of Spartan Group described the existent clime arsenic a post-hype infinitesimal for decentralized AI protocols, with superior and endowment shifting toward much focused, utility-driven applications during Consensus Hong Kong 2026.

“I deliberation we’re successful the trough close now,” said Iyer, whose San Francisco-based steadfast backs early-stage infrastructure and applications built connected decentralized networks. “We went done a frothy period. Now it’s astir figuring retired wherever the existent spot lies.”

Both Iyer and Koh criticized what they spot arsenic overinvestment successful GPU marketplaces and attempts to physique decentralized alternatives to ample AI models similar those from OpenAI oregon Anthropic. The superior required, Koh noted, is “night and day” compared to what’s disposable successful crypto.

Instead, they spot imaginable successful purpose-built, full-stack solutions, tools that commencement with a circumstantial occupation and physique down to the model, compute, and information layers.

Iyer pointed to startups skipping costly SaaS tools and utilizing AI to physique customized interior systems successful days. “Speculation won’t thrust merchandise anymore,” helium said. “We person to deliberation astir users first.”

Both investors emphasized the value of proprietary data, regulatory advantages, oregon go-to-market edges arsenic caller forms of competitory moats.

For founders looking to rise capital, Koh offered blunt advice: “Twelve months ago, it was capable to person a wrapper connected ChatGPT. That’s nary longer true.”

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