Gamza Khanzadaev
Elon Musk’s xAI startup is about to reveal its cutting-edge AI model, but AI-focused cryptocurrencies take unexpected turn, deviating from typical patterns
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Elon Musk’s artificial intelligence start-up, xAI, is gearing up to launch its first AI model tomorrow, creating ripples of anticipation within the tech and crypto communities. Musk, who heads X , shared the news via social media, expressing confidence in the model’s capabilities, stating it is “the best that currently exists” in specific aspects.
Earlier this year, Musk vowed to introduce an AI model dedicated to seeing the maximum truth, challenging the efforts of major tech companies in the field. xAI boasts a team experts from Google’s DeepMind and other leading AI research firms.
The start-up also collaborates closely with Tesla and X, underlining the synergy among these innovative entities. In a noteworthy development, xAI signed a contract in September to train its AI model on Oracle’s cloud, demonstrating the project’s strategic approach.
AI cryptocurrencies’ reaction
Surprisingly, the announcement failed to trigger the usual surge in AI-focused cryptocurrencies. Tokens like Injective (INJ), The Graph (GRT), Render (RNDR), Fetch (FET) and OCEAN showed minimal gains, while the broader AI and big data-focused token segment experienced a 6.22% decline in market cap over the past 24 hours, coupled with a 34.79% decrease in trading volume, according to CoinMarketCap data.
Unlike previous instances, where AI-related news led to significant market movements, this time, these tokens followed the broader crypto market trend, declining alongside Bitcoin and Ethereum.
The subdued reaction highlights the influence of general market dynamics, suggesting that, in this case, the hype around xAI’s AI model launch did not act as a significant catalyst for AI-focused cryptocurrencies.
About the author
Gamza Khanzadaev