The intersection of AI and Crypto presents a major long-term opportunity, with the current market downturn viewed as an ideal accumulation period for investors. An "AI crypto season part two" is anticipated to occur either this year or by the end of 2025, making now a potentially strategic entry point. Within this theme, consider researching projects like Neura and GRASS, which focus on decentralized AI infrastructure and are backed by major venture funds. Outside of the AI theme, Ethena (ENA) is a "super bullish" high-conviction pick due to its exceptional team and ability to bridge crypto with traditional finance. Similarly, Jito (JTO) is highlighted as another top investment based on the perceived strength of its team.

Crypto & AI Intersection (Investment Theme)

• The speaker, Anil Lulla of Delphi, is extremely bullish on the intersection of Artificial Intelligence (AI) and cryptocurrency. He believes that to be a successful investor or builder in the future, one will need deep expertise in both fields.
• Delphi has invested in over 20 teams at the crypto-AI intersection and has launched Delphi Intelligence, a new research arm dedicated to finding opportunities in this space.
• The core thesis is that AI creates abundance while crypto creates scarcity, and these two concepts are naturally complementary.
• The speaker believes the 2024 AI crypto narrative was "beaten to death," and the subsequent price crash is healthy. He states that a good time to buy is often when "no one's paying attention to it and everyone's said it's dead."
• He mentions specific verticals of interest within this theme:
  • AI Agents & Swarms: He finds the idea of AI agents and swarms "super interesting" and "underexplored." He envisions applications like a single-player social media platform where you interact with a swarm of AI agents you create.
  • Inference: This is mentioned as a key vertical where value could accrue.
  • Training: Decentralized training of AI models is highlighted as an interesting area.

Takeaways

• A major crypto venture firm, Delphi, is making a significant, long-term bet on the convergence of AI and crypto.
• The speaker is confident that an "AI crypto season part two is coming" and believes it could happen as early as this year, but is certain by the end of next year.
• The current market downturn in the AI crypto sector could be viewed as a potential accumulation opportunity for investors with a long-term conviction in the theme.
• Investors interested in this theme should research projects focused on decentralized compute (inference/training) and the emerging field of AI agents.

Ethena (ENA)

• Delphi is a "big investor" in Ethena and is currently "super bullish" on the project.
• The primary reason for their conviction is the strength of the team, particularly the founder, who is described as a "different animal."
• The founder is noted for his ability to understand both the "degenness of crypto" and also communicate effectively with the traditional finance (TradFi) world, referencing their BlackRock partnership.

Takeaways

• Ethena receives a strong vote of confidence from a major crypto fund.
• The investment thesis is heavily based on the quality and versatility of the founding team, which is seen as a key driver for long-term success.
• Investors should view the team's ability to bridge the gap between crypto-native culture and traditional finance as a significant strength.

Jito (JTO)

• Delphi are "big investors" in Jito.
• Similar to their thesis on Ethena, their investment is based on the belief that you should "back like really strong teams."

Takeaways

• Jito is another project that has secured backing from Delphi based on the perceived strength of its team.
• For investors, this reinforces the principle of "betting on the jockey, not just the horse." Evaluating the team behind a project is a critical piece of due diligence.

ThorChain (RUNE)

• ThorChain was the very first investment for Delphi's venture fund.
• They had immense conviction in the project, initially identifying it at 6-7 cents. After an investor backed out, the price dropped to 3 cents, which they viewed as a "generational buying opportunity."
• The founders famously used $70,000 from credit cards to make the investment at 3 cents, which later saw massive returns as the price went up to over $20.

Takeaways

• This story highlights the potential rewards of investing with high conviction, especially during periods of fear and price capitulation.
• While this is a historical example, it serves as a powerful lesson in identifying value and having the courage to invest when market sentiment is at its lowest.

Axie Infinity (AXS)

• The speaker calls Axie Infinity the "best investment Delphi has ever made."
• The fund achieved an over 1,000x return on their investment in Axie.

Takeaways

• This demonstrates the massive, venture-scale returns possible in crypto by investing early in projects that achieve product-market fit and create a new category (in this case, Play-to-Earn gaming).
• It serves as a reminder of the asymmetric upside potential within the crypto asset class.

Other Mentioned Assets & Themes

• Neura: The speaker was wearing a shirt for Neura, a project Delphi backed early on. He describes the team as being taken seriously by both the traditional AI and crypto spaces and says they are "cooking hard right now." This is a strong, implicit endorsement.
• GRASS: Mentioned as a specific crypto-AI investment Delphi has made. The thesis is that GRASS helps "incentivize the democratized kind of like building and training of these models." This points to a bullish outlook on decentralized physical infrastructure (DePIN) for AI.
• Private & Deep Tech Investing: Delphi is increasingly investing in private, deep-tech companies outside of pure crypto, such as the robotics company Aptronic. The speaker believes retail investors will get more direct access to private company equity before they IPO, and that a "mother of all bubbles" could be coming for private AI companies.
• Prediction Markets: The speaker notes that "different forms of prediction markets" are a category that is currently seeing a lot of funding and interest in the crypto venture space, mentioning Polymarket as a parallel.