Microsoft and cryptocurrency tokens suffer significant losses due to the fading artificial intelligence hype

The ChatGPT-related artificial intelligence (AI) excitement peaked in Q2 of this year, spurring a number of tech giants, including Microsoft, to enter the field. In the beginning, crypto tokens based on AI projects also reaped enormous benefits, but at the moment, this optimism is gradually fading.

Microsoft experiences a loss on its AI product.

One of the largest IT businesses in the world, Microsoft, was eager to build an AI product and even partnered with OpenAI, the company that created ChatGPT. The Wall Street Journal, however, claims that Microsoft has been routinely losing money on one of its original generative AI technologies. 

According to sources cited by WSJ, AI solutions have been costing the business between $20 and $80 per user every month. If computer costs come down, the profitability of AI products may rise, but in the meantime, Microsoft plans to charge significantly more for its upcoming AI software update.

The impact of the waning AI enthusiasm can be seen not only in TradFi firms but also in cryptocurrencies, with the leading tokens experiencing sharp declines over the previous week.

AI Crypto token prices are down.

Artificial intelligence project-specific cryptocurrency tokens have experienced a generally gloomy week. Even though the majority of the cryptocurrency market had a quieter week during the last week, the majority of the top AI altcoins saw a decline. 

Graph (GRT), Ocean Protocol (OCEAN), SingularityNET (AGIX), and other companies are among the top losers in this industry. These cryptocurrencies all had drawdowns, with GRT decreasing by 9.93%, OCEAN losing 13.32% of its market value, and AGIX plunging by 9.6% from last week’s opening price. 

Among these assets, ARKM stood out as the altcoin that had the least successful run. Over the past week, the native token of well-known blockchain analysis company Arkham Intelligence has fallen more than 20%.