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Thursday, January 23, 2025

Hashed’s Simon Kim Says AI Has a ‘Black Field’ Downside

Hashed’s Simon Kim believes the way forward for synthetic intelligence hinges on a radical shift: breaking open the black field of centralized fashions like OpenAI and constructing a decentralized, clear ecosystem powered by blockchain.

For Kim, CEO of South Korea’s main crypto VC fund, the urgency is evident. AI’s unchecked centralization threatens to create a “god” we don’t perceive, whereas blockchain provides the instruments to reward creators, defend mental property, and supply transparency into generative AI – which has been broadly criticized for its bias and selective reasoning.

“AI is being centralized. OpenAI will not be open, and it’s managed by only a few individuals, so it is fairly harmful. Making one of these [closed source] foundational mannequin is much like making a ‘god’, however we do not know the way it works,” he mentioned in an interview with CoinDesk.

Kim argues that open-source AI fashions like Meta’s Llama are an instance of how AI might be constructed with decentralization and transparency in thoughts.

However he says the dearth of strong incentive mechanisms for knowledge suppliers – i.e. everybody who makes use of the web – continues to be an issue.

“AI fashions are simply crawling the unique content material on the net and giving solutions with out compensating the creators,” Kim mentioned.

Kim believes we are able to repair this by creating a “copyright layer” the place rights holders can monitor how their content material is used – and re-used – by AI whereas being paid alongside the way in which.

Hashed thinks it’s discovered an answer to this with Story, an IP administration protocol that it led a Sequence-B spherical in final yr.

The fund hasn’t invested in any decentralized AI initiatives but, however feels it’s constructing publicity to the area by way of its funding in Story.

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“We undoubtedly want a blockchain-based IP system to incentivize the unique creator, each the creator and the remixers,” Kim continued.

Kim is way from the one voice calling for open supply AI growth. A rising refrain of voices from Meta’s Mark Zuckererg to the Economist’s editorial board all agree that the black field of closed supply AI – the deity whose selections and workings stay a thriller – has to go for the trade to mature.

But it surely’s as much as Kim to persuade them that the answer lies in blockchain and crypto.



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