AI-Focused L2 CryptoGPT Valued at $250M After Latest Funding Round
Artificial intelligence-focused (AI) layer-2 (L2) blockchain CryptoGPT has bagged $10 million in a new funding round spearheaded by DWF Labs, bringing its valuation to $250 million. CryptoGPT said it would use the funding to expand its team of developers and its global presence.
What is CryptoGPT?
CryptoGPT, a zero-knowledge (ZK) layer-2 scaling solution, said it had secured $10 million in a Series A funding round led by market maker DWF Labs. The fundraising took CryptoGPT’s valuation to $250 million, it said in a statement.
However, just $420,000 of the total amount has been so far invested by DWF, according to CryptoGPT. DWF Labs became one of the most active crypto investors during the crypto winter that emerged last, investing in several companies across Web3, metaverse, decentralized finance (DeFi), and game finance (GameFi) sectors.
CryptoGPT’s new funding round comes as the project looks to take advantage of the ongoing hype around generative artificial intelligence (AI) solutions such as ChatGPT. To tackle the surge in interest, CryptoGPT recently launched a Web3-based AI assistant called “Alex” and continues to work on its ZK rollup L2 blockchain and data-to-AI-engine, developed to collect, encrypt, and move data for commercial applications.
A zero-knowledge L2 blockchain is a type of blockchain architecture that utilizes a secondary layer to handle transactions, allowing faster processing times and improved scalability. Meanwhile, the blockchain uses ZK proofs to provide increased privacy and security.
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ChatGPT and the AI Boom
Last year, an AI research laboratory rolled out a chatbot, ChatGPT, which took the world by storm in just several months, reaching 100 million users in January. For comparison, it took TikTok around nine months after its global launch to hit the 100 million users mark, and Instagram took about two and a half years.
ChatGPT’s unprecedented success has left tech giants worldwide scrambling to launch their generative AI products. Last month, Chinese internet company Baidu announced plans to launch a ChatGPT rival. On a similar note, Microsoft terminated its metaverse division earlier this year to focus on AI and has invested $10 billion in ChatGPT developer OpenAI.
In comparison to ChatGPT, CryptoGPT’s primary focus remains on crypto. The project aims to help users earn money by monetizing their gaming, dating, fitness, and education data. In addition, it also intends to launch non-fungible tokens (NFTs) that store the owner’s activity data.
Would you like to see more AI-based blockchains and projects focus on crypto? Let us know in the comments below.