AI tokens surged following Musk’s X Corp’s announcement of a stake in xAI.
Musk's offer of a 25% stake in xAI to X Corp shareholders along with the Grok chatbot trial boosted the AI token. AI tokens are also responding to Sam Altman's firing from OpenAI. Altman is now heading to Microsoft.
Artificial Intelligence (AI)-focused tokens have seen significant gains over the weekend, driven by key developments in the AI sector.
Traders have shown strong faith in the long-term growth potential of these tokens, fueled by notable announcements by industry leaders.
Elon Musk's revelation sparked excitement
Tech entrepreneur Elon Musk has announced that shareholders of X Corp, which includes various companies, will take a whopping 25% stake in his newly announced AI venture xAI.
Excitement around this vision has increased, with xAI instigating the Grouk chatbot experiment and creating a number of duplicate tokens.
Sam Altman was fired from OpenAI
Separately, there were reports earlier this weekend that Sam Altman, the founder of OpenAI (developer of ChatGPT), may be returning to the company's board. These reports have led to the rise of AI cryptocurrencies.
AI coins have remained strong even after it was confirmed that Altman was moving to Microsoft to lead AI research and would not be returning to OpenAI. The position at OpenAI was given to former CEO and founder of Twitch, Emmett Shear.
Today I got a call inviting me to look at a once-in-a-lifetime opportunity: to be the interim CEO of @OpenAI . After consulting with my family and meditating for a few hours, I accepted. I recently resigned as CEO of Twitch due to my own birth.
— Emmett Shear (@eshear) November 20, 2023
The AI token market is witnessing significant developments.
The AI crypto market has responded positively to the aforementioned developments, showing notable performance across various tokens.
Bittensor's TAO posted a 7.7% gain on Monday, adding to last week's impressive 83% rally.
Render's RNDR, Ocean Protocol's OCEAN, Fetch AI's FET, and SingularityNet's AGIX are also bullish and outperform major cryptocurrencies like Bitcoin. However, smaller AI cryptocurrencies such as Synesis One (SNS), LimeWire (LMWR) and nuco.cloud (NCDT) are leading the way with price increases of 97%, 56% and 35% respectively.
The broader AI token market saw an impressive 10% increase on Monday, compared to a 1.7% increase in the global cryptocurrency market.
The recent rise of AI tokens shows the popularity of the sector, which is similar to the influence of gaming applications and decentralized finance (DeFi) tokens in previous market cycles. However, while uncertainties remain, the resilience of AI tokens in terms of corporate developments indicates continued market interest in artificial intelligence technologies.
