As artificial intelligence rapidly advances, a critical question looms: who controls the black box of AI, and what are the implications of this centralized power? For Hashed CEO Simon Kim, the answer is clear – blockchain technology holds the key to unlocking a decentralized, transparent AI ecosystem that benefits creators and protects intellectual property.
The Dangers of Centralized AI Deities
Kim argues that the increasing centralization of AI development, exemplified by closed-source models like OpenAI, poses significant risks. “AI is being centralized. OpenAI is not open, and it is controlled by very few people, so it’s quite dangerous,” he warned in a recent interview. “Making this type of [closed source] foundational model is similar to making a ‘god’, but we don’t know how it works.“
This opacity and lack of accountability in centralized AI models has drawn widespread criticism, with concerns ranging from algorithmic bias to the potential for misuse and manipulation. As these AI “deities” grow more powerful, the need for transparency and decentralization becomes ever more pressing.
The Promise of Open Source AI
Kim points to open-source AI models like Meta’s Llama as an example of how AI development can embrace decentralization and transparency from the ground up. By making the underlying code and training data publicly available, these models enable greater scrutiny, collaboration, and innovation.
“We definitely need a blockchain-based IP system to incentivize the original creator, both the creator and the remixers.”
Simon Kim, CEO of Hashed
However, Kim notes that open source alone is not enough. He argues that the current lack of robust incentive mechanisms for data providers – essentially everyone who uses the internet – remains a major obstacle. “AI models are just crawling the original content on the web and giving answers without compensating the creators,” he explained.
Blockchain: The Missing Piece of the Puzzle
This is where Kim believes blockchain technology can provide a game-changing solution. By developing a decentralized “copyright layer” on the blockchain, rights holders could track how their content is used and reused by AI models, while being fairly compensated along the way.
Hashed has already put this theory into practice, leading a Series B investment in Story, an IP management protocol built on blockchain. While the fund has yet to invest directly in decentralized AI projects, Kim sees Story as a key building block in the emerging ecosystem.
A Growing Consensus for Change
Kim is far from alone in his call for more open and decentralized AI development. A growing chorus of voices, from tech luminaries like Meta’s Mark Zuckerberg to influential publications like The Economist, agree that the black box of closed-source AI must be opened for the industry to mature and thrive.
But it remains to be seen whether this growing consensus will translate into real change. For Kim and other blockchain advocates, the challenge now is to convince the broader AI community that decentralized technologies hold the key to a more equitable, transparent, and sustainable future for artificial intelligence.
As the AI race heats up and the stakes grow ever higher, the decisions made today about the fundamental architecture of these powerful systems will shape the course of technological progress for generations to come. Will we continue down the path of centralized control and opaque decision-making, or will we embrace the decentralized, collaborative ethos of the blockchain revolution? The choice is ours to make.
