Here’s AI Crypto’s Price Reaction

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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.

Source: CoinMarketCap

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.

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Written by on 2023-11-26 13:19:43.

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