Every week, new AI startups emerge, often boasting impressive valuations despite lacking substantial technology. Many of these companies rely on 'prompt arbitrage,' where they pay a small fee to access proprietary models and charge users significantly more for the same information. This model is fragile; when platforms change their terms or raise prices, many of these startups could collapse, leading to a 'Great API Purge' by 2027. The only survivors will be those built on decentralized infrastructure. Centralized APIs pose risks like cost volatility and supply shortages, reminiscent of early online payment systems. A decentralized AI stack could distribute compute and data across multiple nodes, similar to how Bitcoin decentralized finance. This shift is already underway, with networks auctioning GPU cycles and creating adaptable agents. The future of AI will depend on resilience, with projects governed by code rather than contracts, ensuring that the keys to intelligence belong to its creators, not external landlords. Read more AI-generated news on: https://app.chaingpt.org/news

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