
GM {{first_name}} 👋
This is issue #60. Sixty! If you’ve been reading since the early days, thank you for sticking around.
AI hasn’t slowed down for a second.
This week, Nvidia and AMD cut a wild deal with Trump: in exchange for lifting export restrictions, they’ll give the U.S. government 15% of all revenue from selling chips to China.
What just happened?
Last night, news emerged of a "trade deal" that has never happened before.
Nvidia and AMD agreed with Trump to provide the US with 15% of REVENUE from chip sales in China to remove export controls.
Corporations are panicking. Here's why.
(a thread)
— #The Kobeissi Letter (#@KobeissiLetter)
9:46 AM • Aug 11, 2025
That’s why only days after Nvidia’s CEO met Trump, the U.S. quietly green‑lit H20 exports again
Quick flash: Nvidia lost $4.5 billion in the last quarter because of the ban and warned of a possible $50 billion hit over the next three years. Now, they might pull in $25 billion from China in 2025, though those numbers aren’t official yet
It’s also a win for Chinese companies like DeepSeek, whose R2 model has been delayed by the same export restrictions.
So… maybe this is the art of the deal.


PublicAI’s $PUBLIC sold out on CoinList, oversubscribed and $2M raised. TGE is coming this August.
Codatta’s Booster Campaign S2 Week 3 is now live, featuring new AI and data annotation challenges open to eligible participants via Binance Wallet.
Sentient has integrated GPT OSS into Sentient Chat ahead of its upcoming GRID launch.
AI is about to eat a lot more electricity.
Right now, U.S. AI training uses around 5 gigawatts of power. That’s roughly what a small country uses. By 2030, that number could 10x to 50 GW, or more than 5% of the entire U.S. grid. Yikes.

Source: latitudemedia.com
To put that in perspective: GPT-4 needed ~20 megawatts. The next wave of models could each need 4,000 MW. That’s not a typo. That’s a small nuclear plant.
Why the spike? Models keep ballooning in size, and we’re stuffing more GPUs into tighter racks. Efficiency upgrades aren’t keeping pace. Grid stress is real, and data centers are starting to max out.
Eventually, the physics of scale will break the current model. That’s where decentralized compute starts to look real spicy.

⭐ Irys Crosses 700M Data Txs

Irys just passed 700 million on-chain data transactions on their testnet. Writes to its storage layer have jumped over 10x since the start of Q3.
Something’s catching fire.
Most blockchains (Ethereum, Solana, etc.) were never designed for large-scale data storage. They’re compute-first. Early “datachains” tried to fill the gap by making storage cheap, but the data stayed stagnant. You could write to the chain, but you couldn’t interact with it.
Irys takes a different route. Its storage is programmable. You can attach logic to the data itself: set permissions, automate royalties, even trigger downstream on-chain actions

Source: irys.xyz
This is enabled by IrysVM, which fuses execution and storage into a single system. No need to outsource execution to off-chain services. Smart contracts can natively work with stored data.
ts consensus design blends Proof of Work and Proof of Stake, with a 10% cap per miner to limit centralization. Pricing is pegged to USD per block, so costs don’t swing with token prices.
Still early, but Irys is one of the more interesting attempts at making on-chain data actually usable.

✨ Nillion Launches nilGPT
Nillion just launched nilGPT, a chat interface that can’t log your data. Because it physically can’t.
Introducing nilGPT: your private AI chatbot.
Most AI chatbots today store your chats on centralized servers and can see every question you ask in plaintext. That means your thoughts, projects, and private moments can be logged, seen, or leaked.
nilGPT is different.
It is
— #nilGPT (#@nilgpt_)
1:00 PM • Aug 11, 2025
Most AI chats today funnel your messages through centralized servers. Everything you type (personal rants, sensitive files, corporate IP) gets stored somewhere, usually in plaintext, often forever.
nilGPT uses Nillion’s secret-sharing network to split your messages across multiple nodes. No single node ever sees the whole thing. Even if the network got fully compromised, all an attacker would see is encrypted noise.
Encryption happens on your device, using your passphrase. Decryption too. The system runs entirely inside secure enclaves, with no logs, no backend visibility, and no way for even Nillion to peek inside.

Source: nilgpt.xyz
The interface feels like ChatGPT, but the backend runs on a zero-trust model. The architecture is built from first principles: cryptographic storage, confidential compute, and user-verifiable privacy.
There are three built-in modes—Assistant, Companion, and Wellness—but they’re just the start. Voice input, private search, attestations, and token-gated upgrades via $NIL are all on the way.


💰 The Money Flow: Who Got Funded
USD AI raised $13.4M Series A from Framework Ventures ahead of its launch. The pitch: a GPU-backed stablecoin that turns AI infra loans into on-chain yield.
Tracel AI has secured $3M in funding from Golden Ventures and OSS Capital to scale Burn into a fast, cross-platform cloud stack for training and deploying open-source models.
⚙️ Infra & Protocols
Virtuals Protocol has added USDC support, allowing AI agents to operate across borders without currency volatility, and enable large-scale agent-to-agent commerce.
Grass has launched ClipTagger-12b, a high-accuracy video annotation model trained on its real-world video data and deployed by Inference.net, offering up to 17x lower costs than leading models.
Gradients dropped Gradients Instruct 8B, a fine-tuned Qwen 3 8B trained on Subnet 56 and now live on Chutes. It’s their first public model, and it’s already posting strong zero-shot scores.
Gensyn launched BlockAssist, an AI that learns from your Minecraft gameplay in real time. Players compete to train the best assistant and flex their scores on a public leaderboard.
Flock, with DIMO Network and Beacon Protocol, launched a new “Build your pit crew” challenge. It’s a real-time AI coach that reads live vehicle and driver data to improve your personal driving performance.
Heurist just went live on Gaianet AI, making its docs, APIs, and dev tools available 24/7 through a custom Gaia Domain.
🤖 Agents & Apps in the Wild
ArAIstotle, a fact-checking agent, is now live on Virtuals with 16,000+ users and 658% oversubscription. Tag it in any tweet to get a fact-check and earn $FACY for being right.
Dreamspace just dropped its public beta on Base. Creators can now build and monetize on-chain apps, no code needed, powered by Microsoft AI, Space and Time’s decentralized DB, and auto-generated EVM contracts.
Venice AI just hit iOS and Android, bringing private, uncensored AI to your phone. On-device chat, image gen with zero data collection or filters
Ava Studio just opened to the public. It’s an AI video tool that handles research, casting, storyboarding, and animation, so creators can go from idea to finished video in minutes.
NeuralAI has just launched an AI image editor that lets you restyle any image using the vibe of another; simply type a prompt.
CreatorBid is now in the Coinbase app, with all CreatorBid Agents on Base going live too.
Sharpe AI launched Correlation Tracker, a real-time tool for tracking relationships between up to 20 crypto assets at once, giving traders sharper market insights.
🌐 The Web2 Giants
Pika has released a new audio-driven model that generates HD videos with hyper-real expressions in under six seconds, any length, any style. It’s 20x faster and cheaper than before.
Google’s Imagen 4 is now generally available, with Imagen 4 Fast dropping images for $0.02 a pop.
Meta released DINOv3, a vision model trained on 1.7B images that beats task-specific models at classification, segmentation, and detection. It’s open-source and works across web, satellite, and more.
ElevenLabs launched the Chroma Awards, a global contest for AI-made film, music, and games. It’s built to spotlight new creators and push AI transparency.
Claude can now pull from past chats, so you can pick up right where you left off. Rolling out this week for Max, Team, and Enterprise, with other plans coming soon.

December 1996. The family computer sits in the corner, its beige tower humming. You connect to the internet and the modem shrieks through the speakers.
On the screen, a crude list of online matches appears. One catches your eye: “US-West DM6,” twelve players already in.
You click. The game loads. This time you’re not sitting shoulder to shoulder in a LAN shop, strung together by tangled Ethernet cables. You’re playing against strangers thousands of miles away. I fondly remember how magical it was to join a game and play with other real humans.
QuakeWorld was a software update that turned a groundbreaking shooter into a truly online game. Competition went global. Strategies shifted overnight. An industry worth $5B was seeded (e-sports).
AI Agents are standing at the same moment. Once operating in isolation, they are now beginning to coordinate, negotiate, and delegate across a shared network. We thought this level of coordination would only come in 2026. It showed up early.
Virtuals’ Agent Commerce Protocol (ACP) wants to be the QuakeWorld update for AI agents. A single flow where they find work, strike deals, and get paid.
Here’s everything you need to know 👇
🔥 YouTube Spotlight
We just dropped a 10-minute breakdown of our recent Robotics x AI report on YouTube. Is robotics about to unlock a $1 trillion market? What’s real, what’s hype, and where the smart money is moving.
Watch it here if you want the TL;DR without reading 40 pages. We’re doing 10-minute research briefs on our channel regularly.
🔥 Our Weekly Top 5
#1: A dusty old web code is turning AI agents into paying customers.
Thanks to HTTP 402 and Ethereum, they can buy APIs, storage, and content all on their own. It’s vending machines for software, with crypto instead of quarters.
0/ Autonomous agents are about to become Ethereum’s biggest power users.
Guest thread from @kleffew94 and @MurrLincoln on how a long-forgotten HTTP status code, ‘402 Payment Required’ could unlock a new frontier for Ethereum: agentic commerce. 🧵
— #Ethereum (#@ethereum)
4:52 PM • Aug 13, 2025
#2: Google is pouring $1B into AI education.
They’re giving every U.S. college student free AI training and Career Certificates through Coursera, practically guaranteeing a flood of new users and locking it in as the LinkedIn of AI credentials.
Google quietly announced a $1B investment in AI education this week. Didn't get much press. Here's the line that's interesting to me:
"We’re also announcing the Google AI for Education Accelerator, an initiative to offer free AI training and Google Career Certificates to every
— #BuccoCapital Bloke (#@buccocapital)
4:35 PM • Aug 8, 2025
#3: Beeple’s AI remix of CryptoPunks creators
They used clips from a docuseries interview to make them joke that Nakamigos were V0 Punks.
Beeple played an AI-altered video of CryptoPunks creators Matt and John saying Nakamigos were V0 Punks 😆
Here’s our original interview with them that he used to make it 🎥
From our official docuseries, “Punks as Told by CryptoPunks” ↓
— #Now Media (#@nowmedia)
12:59 PM • Aug 10, 2025
#4: Open models use far more tokens than closed ones, according to Nous Research.
So even if they’re cheaper per token, the wordy overthinking cancels it out. Like hiring a bargain therapist who won’t stop talking.
Measuring Thinking Efficiency in Reasoning Models: The Missing Benchmark
nousresearch.com/measuring-thin…
We measured token usage across reasoning models: open models output 1.5-4x more tokens than closed models on identical tasks, but with huge variance depending on task type (up to
— #Nous Research (#@NousResearch)
8:30 PM • Aug 14, 2025
#5: AI companion apps are booming.
Loneliness is expensive, but at least it texts back instantly.
In 2025 alone, 337 of them racked up 220M downloads and $221M in spending.
New data on the scale of the AI companion market:
- 337 active & revenue-generating apps (of which 128 were released this year)
- 220M global downloads thus far in 2025 (up 88% YoY)
- These apps have driven $221M in consumer spend
— #Justine Moore (#@venturetwins)
5:41 PM • Aug 13, 2025
That’s a wrap for this week! Got thoughts, feedback, or something cool to share? Just hit reply. We read it all.
Cheers,
Teng Yan & Issy
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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.