Amazon Web Services (AWS) and Microsoft are stepping back from AI data center investments, signaling issues with the centralized model. Analysts suggest decentralized blockchain-based infrastructure as a solution. Kai Wawrzinek, from Impossible Cloud Network, highlighted these concerns in an interview. Previously a promising sector, AI now faces challenges with major firms pausing data center construction. The shift indicates the inefficiency of centralized models in scaling the internet. Companies like Meta and OpenAI are also struggling with AI infrastructure costs. Wawrzinek advocates for a decentralized finance and AI (DeFAI) approach, emphasizing agility and efficiency. Decentralized systems offer increased accessibility and scalability, as seen in firms like Aethir and 0G Labs. The success of China's genAI model showcases the potential of decentralized AI. Wawrzinek concludes that the future of AI infrastructure lies in open, global networks rather than traditional centralized models. Read more AI-generated news on: https://app.chaingpt.org/news

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