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Latest news on Artificial Intelligence (AI) in the cryptocurrency market

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AI Activity on Blockchains Sees Significant Growth in 2025

According to Cointelegraph, artificial intelligence activity on blockchains has experienced a substantial increase since the beginning of 2025, driven by heightened funding and user engagement with this emerging technology. Blockchain analytics platform DappRadar reports that AI-related onchain activity has surged by 86% this year, with approximately 4.5 million daily unique active wallets participating in AI decentralized applications (DApps). The rise in daily users has expanded AI app market share from 9% at the start of the year to 19%, closely trailing blockchain gaming, which holds a 20% share. DappRadar analyst Sara Gherghelas emphasizes that the growth of AI is not merely a result of hype but signifies a fundamental shift in user interaction with decentralized applications. AI agents are increasingly serving as a new onchain interface layer, whether through DeFi copilots, social agents, or autonomous gaming assistants. In May, DappRadar predicted that AI agent usage, which involves programs capable of autonomously executing blockchain actions like trading, would soon surpass gaming, a sector that has traditionally dominated the DApp ecosystem. The report highlights that AI agent funding has risen by over 9% in 2025, with $1.39 billion raised by AI agent projects, marking a 9.4% increase compared to 2024. Although this figure is still lower than the funding received by companies like OpenAI, it is noteworthy that AI agent funding now rivals or exceeds other Web3 verticals such as blockchain gaming. Gherghelas suggests that investors in the Web3 space increasingly view AI agents as a new primitive capable of reshaping user interactions with protocols, navigating DApps, and even automating personal financial strategies. She anticipates that 2025 could be the first year AI agents attract more capital than any other Web3 vertical. DappRadar's data from January to June reveals that most AI DApp users are located in Europe, accounting for 26% of all interactions. The largest share of users, at 33%, comes from unspecified regions and users utilizing VPNs or other anonymized sources. Asia closely follows Europe with just under 22% of users, while North America accounts for 15.8%. Gherghelas notes that the global distribution of AI users indicates that AI agents are not a localized phenomenon, with diverse demand spanning continents. Whether managing trades in Asia, representing users in Europe, or interacting with players in North America, AI agents are increasingly becoming a cross-continental presence.
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Elon Musk's xAI Plans to Retrain Grok Model with Revised Knowledge Base

According to Cointelegraph, Elon Musk has announced that his artificial intelligence company, xAI, will undertake a significant retraining of its AI model, Grok, using a new knowledge base devoid of "garbage" and "uncorrected data." Musk revealed in a post on X that the forthcoming Grok 3.5 model will possess "advanced reasoning" capabilities and aims to "rewrite the entire corpus of human knowledge," by adding missing information and eliminating errors. He emphasized the necessity of this approach, citing the prevalence of "far too much garbage" in existing foundation models trained on uncorrected data.Musk has consistently criticized rival AI models, such as OpenAI's ChatGPT, for being biased and omitting politically incorrect information. His vision for Grok is to create an "anti-woke" model, free from what he perceives as damaging political correctness. This aligns with his previous actions, such as relaxing content moderation on Twitter after acquiring the platform in 2022, which led to an influx of unchecked conspiracy theories, extremist content, and fake news. To combat misinformation, Musk introduced the "Community Notes" feature, enabling X users to provide context or debunk posts prominently displayed under offending content.Musk's announcement has sparked criticism from various quarters. Gary Marcus, an AI startup founder and professor emeritus at New York University, expressed concern over Musk's plan, likening it to a dystopian scenario reminiscent of George Orwell's "1984." Marcus criticized the idea of rewriting history to align with personal beliefs, suggesting it represents a dangerous precedent. Bernardino Sassoli de’ Bianchi, a professor at the University of Milan, echoed these sentiments, warning against the manipulation of historical narratives by powerful individuals. He argued that altering training data to fit ideological perspectives undermines innovation and constitutes narrative control.In his efforts to reshape Grok, Musk has encouraged X users to contribute "divisive facts" for training the bot, specifying that these should be "politically incorrect, but nonetheless factually true." This call has resulted in a flood of conspiracy theories and debunked extremist claims, including Holocaust distortion, vaccine misinformation, racist pseudoscientific assertions about intelligence, and climate change denial. Critics argue that Musk's approach risks amplifying falsehoods and conspiracy theories under the guise of seeking factual accuracy.
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OpenAI Reduces Dependency on Scale AI Amid Meta Acquisition

According to Cointelegraph, OpenAI is scaling back its contracts with Scale AI, a data labeling startup recently acquired by Meta. This decision comes shortly after Meta announced a $14.8 billion deal for a 49% ownership stake in Scale AI, marking Meta's second-largest acquisition. As part of the deal, Scale CEO Alexandr Wang will join Meta’s experimental AI project, with the companies having announced the agreement on June 12. Scale AI, founded in 2016 and backed by over 100 investors, provides labeled data crucial for training and enhancing artificial intelligence models. The startup has been a supplier to prominent AI companies such as Anthropic, Cohere, and Adept. In 2019, Scale AI raised $100 million in a Series C funding round, according to PitchBook. However, OpenAI is now phasing out its reliance on Scale AI's data, seeking more specialized data sources for its AI models. An OpenAI spokesperson revealed that the company began reducing its contracts with Scale over the past year, noting that Scale accounted for only a small portion of OpenAI’s data requirements. Google is reportedly another company moving away from contracts with Scale AI, driven by concerns that Meta's acquisition could provide insights into competitors’ AI advancements. Reuters reported that this strategic shift is motivated by the potential competitive implications of Meta's involvement with Scale AI. Despite these changes, Scale interim CEO Jason Droege emphasized that the startup remains an independent entity, asserting that their commitment to protecting customer data remains unchanged. OpenAI is now exploring alternative data suppliers, including emerging companies like Mercor, to support its operations. Bloomberg highlighted that Scale AI initially employed a large number of contractors to label images and text for early AI systems. Over time, the company transitioned to hiring more educated contractors to contribute to the development of advanced AI models. This evolution reflects the growing complexity and sophistication required in AI data labeling processes.
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Study Suggests AI Chatbots May Impact Cognitive Abilities

According to Cointelegraph, a recent study conducted by researchers at the Massachusetts Institute of Technology's Media Lab indicates that artificial intelligence chatbots, such as OpenAI's ChatGPT, may be affecting cognitive abilities. The study involved 54 participants who completed essay writing tasks using three different methods: ChatGPT, search engines, and their own cognitive abilities. In a subsequent session, participants who initially used ChatGPT were asked to write without any tools, while those who relied solely on their brains were instructed to use the language model.The findings were significant, revealing that over 83% of ChatGPT users struggled with memory recall, unable to quote from essays they had written just minutes earlier. Similarly, more than 80% of participants using language models faced difficulties recalling their own work. Alex Vacca, co-founder of sales tech agency ColdIQ, described these results as "terrifying," suggesting that AI might be leading to cognitive decline rather than enhancing productivity. The researchers noted that brain connectivity diminished with increased reliance on external tools, with the brain-only group showing the strongest cognitive networks, followed by the search engine group, and finally, the language model group exhibiting the weakest coupling.The study utilized electroencephalography (EEG) to monitor brain activity, assessing cognitive engagement and load during the tasks. The researchers warned of accumulating "cognitive debt" from repeated dependence on external systems like language models, which could replace the cognitive processes necessary for independent thinking. This cognitive debt, while deferring mental effort in the short term, could lead to long-term consequences such as reduced critical inquiry, increased susceptibility to manipulation, and decreased creativity.The paper, which is yet to undergo peer review, suggests that the use of AI language models might negatively impact learning, particularly among younger users. The researchers emphasized the need for "longitudinal studies" to fully understand the long-term effects of AI chatbots on human cognition before these tools are deemed beneficial for humanity. When approached for comment, ChatGPT responded that the study does not claim the chatbot is inherently harmful but cautions against excessive reliance without reflection or effort.
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