Charles Hoskinson believes artificial intelligence (AI) is about to repeat a pattern he witnessed firsthand decades ago.
The Cardano founder argues that blockchain technology will eventually absorb AI, much like cryptocurrency once absorbed cryptography as a discipline.
Why Hoskinson Sees a Coming AI Reckoning
Speaking on the Deeptech Insights podcast this week, Hoskinson pointed to a math problem he considers unsustainable: data center spending keeps growing tenfold year after year, yet the electricity grid simply cannot scale at that pace.
Discover more
Deploy Cloud Servers
Open Trading Account
NEWS
Labs like OpenAI and Anthropic still need to turn a profit eventually, he noted, and the enormous cost of pretraining new models keeps narrowing the path to profitability.
Hoskinson drew a direct parallel to his own career. Cryptographers once resisted any association with cryptocurrency, he recalled, until crypto‘s money became powerful enough to hire away the field’s best talent. He expects AI to follow a similar arc within five to ten years.
“Cryptocurrencies are going to eat AI because we solve all the hard problems that AI cant solve,” Hoskinson said, naming payments, alignment, and data provenance as the specific gaps blockchains could fill.
Follow us on X to get the latest news as it happens.
CHARLES HOSKINSON SAYS CRYPTO WILL “EAT” AI OVER THE NEXT 5 TO 10 YEARS
He thinks the current data center boom will eventually give way to a much more distributed AI infrastructure:
– Hoskinson expects data centers to be massively overbuilt, with demand eventually falling short…
His alignment argument centers on governance. Individual AI companies currently set their own rules on acceptable behavior and free speech, he argued, whereas a blockchain-based system could instead establish shared standards among participants.
The same infrastructure, he added, could also track content origin and automate royalty payments whenever AI systems draw on someone elses work.
Hoskinson floated an alternative to building more data centers: pooling everyday phones and GPUs into a distributed training network. He compared todays AI buildout to the late-1990s fiber optic boom, when roughly 90% of newly laid cable sat idle for nearly a decade.
A similar pattern could follow with data centers, he argued, shifting toward smaller models running locally on devices like Apples M5 Mac Studio, with cryptocurrency as the coordination layer.
His Timeline for U.S. Crypto Regulation Looks Grim
Hoskinson also predicted the CLARITY Act won‘t clear Congress until 2029, blaming three specific missteps by the Trump administration, including tying crypto’s public image too closely to Trump-branded tokens.
“…There‘s no pressure, political pressure to pass this type of thing. they’ll just wait until the next session and force uh a heavily unfavorable bill including ethics provisions to Trump uh on them if they want clarity. Of course, Trump won‘t make those concessions. So, actually, we’ll have to wait till 2029 to get a new Clarity Act passed because of the ineptitude of uh of what the White House did. And I was very public about this…,” Hoskinson noted.
That prediction landed just a day after the Senate actually failed to advance the CLARITY Act on September 15, falling short of the 60 votes required.
Subscribe to our YouTube channel to watch leaders and journalists provide expert insights.