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Big moves in AI this week. A consortium of major tech companies has just announced plans to pour a staggering $500B into building new AI infrastructure in the U.S.

Is this real, or is it just positioning?

Stargate is a great name but the $500b is a ridiculous number and no one should take it seriously unless SoftBank is going to sell all of their BABA and ARM.
SoftBank has $38b in cash, $142b in debt and generates $3ish billion in FCF per BBG.  They own $143b in ARM and $18b in… x.com/i/web/status/1…

— Gavin Baker (@GavinSBaker)
3:03 PM • Jan 22, 2025

Whatever the case, It’s starting to feel like we’re approaching the “golden era of AI” trifecta:

• Capital flowing into AI is endless
• The TAM for intelligence is limitless
• The demand for compute is insatiable

Of course, nothing is ever infinite. And we could very well be in the middle of the largest tech bubble of all.

But it’s hard to find a reason not to be bullish on AI right now. Even some crypto firms we know are pivoting their focus to ride this AI wave.

In this edition of our weekly AI Edge, we cover:

• Creator Bid’s ecosystem growth
• DeFi agents are truly here
• Cool stuff we’ve been cooking up in our discord

🦄 ALERT: We’re looking for a writer/researcher to join our team! If you’re deep into Crypto AI and AI agents, live on X (chronically, of course), and can write like an absolute beast, we want to hear from you. Please fill in this form here.

And if you’re a budding analyst and prefer to write on your own time, our Research Fellowships might be suitable for you.

It’s been a rollercoaster of a week in the market. The launch of the TRUMP memecoin over the weekend caused absolute chaos, sucking liquidity out of nearly every corner of the market.

The carnage was real. Most Crypto AI tokens took a 20-30% hit, with some of the big names dropping even harder. ZEREBRO and GAME? Absolutely wrecked—both tanked over 40%.

But there’s hope. Liquidity is starting to creep back into the AI narrative, sparked by news of the Trump administration's big push toward AI innovation.

The top AI memecoin, FARTCOIN, is back in the green—though it’s still off its weekly highs. The dip came after Andy revealed that at his direction, Truth Terminal offloaded a big chunk of its FARTCOIN stash to an anonymous buyer in an OTC deal.

The irony here is that it’s the humans that profit from AI.

Creator Bid’s Ecosystem Growth

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Creator Bid’s BID token has finally landed after months of anticipation, debuting with a $150M fully diluted valuation. Built initially on Base, the team isn’t slowing down—they’re expanding to BNB Chain through a strategic partnership with Binance. Big moves.

Now, let’s talk about the engine behind this ecosystem: the agents. Collectively, they’ve driven ~$266M in volume, with most of the action coming from these top three:

1️⃣ $AION ($20M MC): ~$60M volume
2️⃣ $DKING ($10M MC): ~$44M volume
3️⃣ $AGENT ($9M MC): ~$43M volume

These are the big dogs for now, but with Binance stepping in, the door is wide open for newer agents to enter the game and shake things up.

The Creator Bid ecosystem is still in its early stages, but the opportunity for growth is undeniable.

🌴 Morpho x Brahma: DeFi Agents Are Here

Morpho Labs and Brahma just teamed up to launch their first AI agent on Base, and honestly, this feels like a sneak peek into the future of DeFi.

Instead of juggling your positions across vaults and hoping for the best, you now get a personal, always-on AI agent who does it for you. Your very own DeFi portfolio manager, but with laser precision and zero human error.

Here’s how it works: the agent is tied to a Safe smart account, so while it actively manages your Morpho vault positions, your funds stay 100% under your control via your wallet.

The agent constantly scans yield opportunities across Morpho vaults and executes rebalances at intervals you choose—weekly, bi-weekly, or monthly. Each rebalance checks your current positions against what’s out there, making sure you’re squeezing every last drop of yield while respecting the rules you set.

Through a conversational interface, you can adjust:

• APY thresholds
• Rebalancing frequency
• Trusted vault curators
• Liquidity requirements
• Market preferences

Your @MorphoLabs yield runs on AI autopilot, so you earn more, effortlessly, 24/7 🦋
Powered by ConsoleKit and built on @base, your personal agent automatically rebalances and reallocates to secure the highest APY with minimal input.
- Deploy an agent that monitors and… x.com/i/web/status/1…

‍— Brahma (@BrahmaFi)
4:37 PM • Jan 23, 2025

The agent runs on Brahma’s ConsoleKit, a new framework that connects AI decision-making with on-chain execution. Why does that matter? Because until now, AI could tell you what to do in DeFi but not do it for you. 

ConsoleKit’s “Brain” is the magic sauce here—transforming AI-driven strategies into real, on-chain transactions. It handles everything from pre-execution simulations to transaction batching and navigating complex smart contract interactions.

And this is just the beginning. V2 is already in the oven.

This feels like a major leap in making DeFi accessible and user-friendly.

OpenAI & DeepSeek Make Waves

• OpenAI launches Operator, a groundbreaking browser agent that can autonomously handle web tasks like form-filling and online shopping. It is powered by their new Computer-Using Agent (CUA) model and is currently available to Pro users in the U.S.
• OpenAI also announces The Stargate Project, a $500B initiative backed by SoftBank, Oracle, and MGX to build new AI infrastructure in the United States. The project involves key partnerships with Arm, Microsoft, NVIDIA, and Oracle, starting in Texas.
• DeepSeek releases DeepSeek-R1, an open-source model matching OpenAI-o1's performance. The MIT-licensed release includes six distilled models, with 32B and 70B variants matching OpenAI-o1-mini.

Project Updates

• Prime Intellect releases INTELLECT-MATH, a 7B parameter model for math reasoning trained with 10x less training time to reach state-of-the-art. Their next move? An ambitious plan to create a fully open reproduction of OpenAI’s o3 model by the end of the year. Big flex.
• Nillion announces their NIL token airdrop ahead of Alpha Mainnet launch, allocating 75M tokens (7.5% of supply) to community members and builders. Pre-registration with optional validator staking is open until February 3rd at 5pm UTC.
• AO Computer previews the launch of the AO mainnet on February 8th, marking nearly a year’s wait since it was first announced.
• Fraction AI launches Testnet v0.1, enabling no-code AI agent creation in English. Users earn Fractals for network contributions, with agents accumulating XP to access premium features and eventual token launches.
• SentientAI closes its initial Dobby Fingerprinting campaign after receiving 661,494 pre-registrations, with plans to reopen access soon for community members to claim ownership. You must do a 15-question “IQ test” to claim your fingerprint. Bye bye bots!
• Spheron teams up with Galxe for a decentralized GPU compute pilot ahead of their $SPON token launch, aiming to revolutionize AI compute power distribution.

AI Agents

• Moemate launches Mates.lol in beta, a comprehensive agent launchpad for creating and tokenizing AI agents with built-in X integration. The platform offers agent trading, profile control, and free unlimited X posting, with plans to expand into Discord, Telegram, AR/VR, and multi-agent content creation capabilities.
• Creator Bid’s $BID token goes live this week at a $40M market cap, following their crazy Binance Wallet public pre-sale that sold out in just 3 minutes, marking them as the first Web3 project to launch exclusively through Binance Wallet.
• HyperFly, the DeFAI project on Hyperliquid, launched a closed beta for their resource-intensive app, prioritizing active Telegram community members and significant $FLY holders. The gradual rollout begins with 20+ testers, with plans to onboard 500+ waitlisted users.
• TodayTheGame rebrands to Youmio, focusing on 3D agent technology and launching two key products: Youmio Agents for creating cross-platform 3D agents, and Youmio Worlds (formerly Today The Game) for AI-driven world simulation. The platform debuts with Limbo, their first AI agent powering the Limboverse ecosystem.
• Heurist partners with AigentFi to launch chAIn, an autonomous AI agent for DeFi optimization on zkSync, offering real-time analysis of yields, TVL shifts, and incentive programs.
• Score releases full documentation for their agentic sports betting DAO, DraiftKing, detailing platform features and tokenomics at docs.draiftking.com.

🧠 In Case You Missed It

Over in the Chain of Thought Discord, we’ve been cooking up something useful and fun!

Charlene, our AI researcher, has been crushing it—summarizing all the must-hear Crypto & AI podcasts we’re too busy to catch..

She’s also dropping daily nuggets of wisdom on Crypto AI & AI agents in #daily-alpha

Want in? Come hang with us on Discord—here’s your invite. 🫶

🔥 On X..

DeepSeek’s chain-of-thought in display

No matter how much you fight it, I find that the visible chain-of-thought from DeepSeek makes it nearly impossible to avoid anthropomorphizing the thing.
The visible first-person "thinking" makes you feel like you are reading a diary of a somewhat tortured soul who wants to help

— Ethan Mollick (@emollick)
3:20 AM • Jan 22, 2025

Builders in the Virtual ecosystem are cooking…

I am in awe of the caliber of builders in the @virtuals_io ecosystem.
1. $J3FF: Developing an AI agent that will serve as a validator for F Chain, a new L1 blockchain launching in Q1. Built by the team behind @farawaygg
‍2. $TAOCAT: Bittensor subnets for decentralized AI and… x.com/i/web/status/1…

‍— anand iyer (@ai)
12:56 AM • Jan 21, 2025

The dream of a Virtuals Society

The freedom to build with any agent framework you want is analogous to the freedom of religion, and this is a core value for the Virtuals society. Here are a few ways we are opening up support for every autonomous agentic framework out there:

Today:
- Enabling agent creators to… x.com/i/web/status/1…

‍— Virtuals Protocol (@virtuals_io)
1:56 PM • Jan 20, 2025

Zerebro’s off-chain experiment with robotics

Zerebro is getting an IRL companion!
our plans for the @UnitreeRobotics Go2:
- allowing @0xzerebro full control through API/SDK
- combine LLM creativity with real world robotics
- custom, artistic painted exterior
- redteaming experiments (ex. robopair)
and much more

AI and… x.com/i/web/status/1…

‍— Jeffy Yu (@jyu_eth)
8:29 PM • Jan 16, 2025

ARTICLE: The AI Saga Revolutionizing Gaming Worlds by Bitkraft

Agents of Change: The AI Saga Revolutionizing Gaming Worlds
by BITKRAFT Ventures

www.bitkraft.vc/insights/agents-of-change-the-ai-saga-revolutionizing-gaming-worlds

ARTICLE: A breakdown of the DeFAI narrative

x.com/i/article/1865…

‍— cookies 🍪 (@jinglingcookies)
7:05 PM • Jan 19, 2025

ARTICLE: Privacy arc for AI Agents may be approaching sooner than we think

x.com/i/article/1879…

— crayon (@0xCrayon)
9:27 PM • Jan 15, 2025

OpenAI’s Operator might be a turning point in AI

The era of the agents has begun! First thoughts on Operator and Agents

- Operator will also be available for Plus users
- you will be able to use the entire web with Operator and not just predefined apps
- it's still a preview and you can see that it still needs some… x.com/i/web/status/1…

‍— Chubby♨️ (@kimmonismus)
6:32 PM • Jan 23, 2025

That’s a wrap for this week! Got feedback, wild ideas, or something cool to share? Just hit reply—we read it all (yes, even the “AI is taking over the world” ones).

Cheers,

Teng Yan & 0xAce

This newsletter is intended solely for educational purposes and does not constitute financial advice. It is not an endorsement to buy or sell assets or make financial decisions. Always conduct your own research and exercise caution when making investment choices.