Crypto Firms Pivot to Survive AI’s VC Monopoly
Crypto firms are pivoting to AI-related businesses to survive the AI VC monopoly, with many abandoning standalone Web3 pitches and restructuring around AI infrastructure and operations. Bitcoin mining companies are converting their data centers to serve AI workloads, while consumer-facing crypto companies are integrating AI to cut costs.
US AI startups raised $242 billion in early 2026, capturing 80% of global venture funding. Crypto startups are struggling to attract capital, with funding plummeting 71% year-over-year in February 2025. Bitcoin mining companies are repurposing their facilities for AI workloads, with Hut 8 executing a $7 billion deal with Google. Consumer-facing crypto companies are integrating AI to cut costs, with Crypto.com cutting 12% of its workforce. Some projects are merging blockchain technology with AI at the protocol level, raising seed funding to build Web3-powered AI data training platforms. The sustainability of these strategies remains uncertain.
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