Grayscale Spotlights 3 Crypto Projects Merging AI and Crypto

How Crypto and AI Are Joining Forces

Artificial intelligence needs massive computing power, vast amounts of training data, and substantial funding. At the same time, blockchain technology excels at organizing global resource sharing and managing digital payments.

On October 23, digital asset manager Grayscale released an analysis examining how crypto protocols are building direct revenue streams from AI infrastructure.

Zach Pandl, Head of Research at Grayscale, highlighted three specific projects: PEARL, DATA NetworkDATA-1.54%, and USD.AI. Each focuses on a different step in the AI supply chain.

However, Pandl offered a balanced perspective on their future. He noted that the long-term relevance of these projects will depend on real-world adoption and competitive economics.

PEARL: Combining AI Computing with Blockchain Rewards

PEARL focuses directly on hardware efficiency. The project allows Graphics Processing Units (GPUs) to handle complex AI tasks while simultaneously securing a proof-of-work blockchain.

Because GPUs process many calculations in parallel, operators can earn regular block rewards alongside revenue from AI computing services.

According to CoinGecko data cited by Grayscale through October 22, PEARL logged a 580% gain over a three-month period. The project also saw its network hash rate jump by 93.5%.

Past performance of digital assets is not an indication of future results. Rapid price movements carry significant risk, and token values can fluctuate wildly depending on broader market conditions.

DATA Network: Monetizing Human-Contributed AI Datasets

AI models rely heavily on human-contributed photos, videos, and voice recordings to learn patterns. The quality and variety of this training data directly determine how well an AI model performs.

DATA Network is building collection, licensing, and tracking tools to turn these contributions into paid datasets. Applications built on its infrastructure can license data to AI laboratories while rewarding the individuals who provided the original content.

Grayscale reported that DATA Network has already accumulated over 280 million verified records.

To scale its system, DATA announced plans on October 12 to migrate its protocol software to the SuiSUI-4.09% blockchain. It will also use Walrus, a decentralized file-storage network, as its default storage layer.

USD.AI: Financing AI Hardware via Decentralized Lending

Buying specialized computer hardware creates huge capital demands. USD.AI, a blockchain-based lending platform, addresses this need by offering loans secured directly by physical GPUs and their operational cash flows.

The platform finances up to 80% of hardware deployment costs after credit reviews. Borrowers cover at least 20% themselves and repay the principal over a three to five-year period.

Pooled capital funds these hardware loans, giving participants exposure to AI computing yields.

However, decentralized finance (DeFi) lending carries real risks. Participants remain exposed to potential borrower defaults, collateral loss, and smart contract software failures.

Despite these risks, USD.AI has deployed over $400 million into hardware financing. In August, crypto exchange Bullish (NYSE: BLSH) announced a $100 million credit facility for USD.AI, connecting stablecoin capital directly with physical AI equipment.

Growing Institutional Interest in AI Infrastructure

USD.AI is part of a broader industry effort to connect traditional finance and crypto with physical computing infrastructure.

In April, Vertical Data signed a $43 million hardware and financing agreement with Alpha Compute Corp. (Nasdaq: ALP, formerly Alphaton Capital). That deal provided infrastructure using Nvidia's B300 chips for privacy-preserving AI workloads.

On an even larger scale, chipmaker Nvidia (Nasdaq: NVDA) proposed partnerships on August 10 with six major financial institutions, aiming to channel over $500 billion into AI infrastructure over time.

These institutional arrangements leave final funding decisions to traditional lenders, who carefully evaluate customer demand, cash flows, equipment utilization, and residual hardware values.

Grayscale Launches Crypto Portfolios for Financial Advisors

Alongside its research into AI crypto projects, Grayscale is expanding institutional access to the broader digital asset market.

The firm recently launched four model portfolios designed specifically for financial advisors. These strategies allow advisors to offer client exposure to diversified crypto assets using standard exchange-traded products (ETPs).