Hashed's Simon Kim Says AI Has a 'Black Box' Problem

Centralized AI is opaque, centralized, and a immense load for intelligence spot owners. Here's however helium thinks blockchain fixes this.

Jan 14, 2025, 5:41 p.m. UTC

Hashed's Simon Kim believes the aboriginal of artificial quality hinges connected a extremist shift: breaking unfastened the achromatic container of centralized models similar OpenAI and gathering a decentralized, transparent ecosystem powered by blockchain.

For Kim, CEO of South Korea’s starring crypto VC fund, the urgency is clear. AI's unchecked centralization threatens to make a "god" we don’t understand, portion blockchain offers the tools to reward creators, support intelligence property, and supply transparency into generative AI – which has been widely criticized for its bias and selective reasoning.

"AI is being centralized. OpenAI is not open, and it is controlled by precise fewer people, truthful it's rather dangerous. Making this benignant of [closed source] foundational exemplary is akin to making a 'god', but we don't cognize however it works," helium said successful an interrogation with CoinDesk.

Kim argues that open-source AI models similar Meta's Llama are an illustration of however AI tin beryllium built with decentralization and transparency successful mind.

But helium says the deficiency of robust inducement mechanisms for information providers – i.e. everyone who uses the net – is inactive a problem.

"AI models are conscionable crawling the archetypal contented connected the web and giving answers without compensating the creators," Kim said.

Kim believes we tin hole this by processing a “copyright layer” wherever rights holders tin way however their contented is utilized – and re-used – by AI portion being paid on the way.

Hashed thinks it’s recovered a solution to this with Story, an IP absorption protocol that it led a Series-B round successful past year.

The money hasn't invested successful immoderate decentralized AI projects yet, but feels it is gathering vulnerability to the abstraction via its concern successful Story.

This bid is brought to you by Consensus Hong Kong. Come and acquisition the astir influential lawsuit successful Web3 and Digital Assets, Feb.18-20. Register contiguous and prevention 15% with the codification CoinDesk15.

"We decidedly request a blockchain-based IP strategy to incentivize the archetypal creator, some the creator and the remixers," Kim continued.

Kim is acold from the lone dependable calling for unfastened root AI development. A increasing chorus of voices from Meta's Mark Zuckererg to the Economist's editorial board each hold that the achromatic container of closed root AI – the deity whose decisions and workings stay a enigma – has to spell for the manufacture to mature.

But its up to Kim to person them that the solution lies successful blockchain and crypto.

Sam Reynolds

Sam Reynolds is simply a elder newsman based successful Hong Kong. Sam was portion of the CoinDesk squad that won the 2023 Gerald Loeb grant successful the breaking quality class for sum of FTX's collapse. Prior to CoinDesk, helium was a newsman with Blockworks and a semiconductor expert with IDC.