- Meitu transitions from crypto to AI.
- The company expects high profits from its AI investments.
- Meitu has no immediate plans to dump its previous crypto investments.
As Artificial Intelligence (AI) hype ramps up, more companies jump on the bandwagon. Most recently, Chinese tech giant Meitu has shifted its focus from cryptocurrency to AI. This pivot comes after the company managed to turn its financial tides from a loss to a profit. As AI takes the spotlight, will crypto be able to compete?
Meitu’s Strategic Shift to AI
On Monday, October 16, Chinese tech company Meitu announced shifting its strategic focus from cryptocurrency investments to AI. This pivot comes after the company successfully transitioned from a loss-making period to profitability.
Meitu recently launched MiracleVision 3.0, an AI visual solution aimed at individual and enterprise customers to solidify its focus on AI. This new product diversifies Meitu’s portfolio and positions the company as a significant player in the rapidly growing AI market.
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Meitu explained its decision as a calculated move to tap into a technology expected to shape the future. With AI’s potential to revolutionize various sectors, Meitu expects surging profits from its investments.
While Meitu had previously invested a hefty $100 million in cryptocurrencies such as Bitcoin and Ethereum, the company has made it clear that it has no immediate plans to dispose of these assets.
Is Crypto Losing Out to AI?
In recent years, crypto has benefited from a surge in interest in blockchain technology. However, since the launch of ChatGPT, AI has taken the spotlight. Most recently, analysts noticed a decline in crypto trading volume and public interest as AI takes center stage.
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This shift indicates where big tech and finance giants are directing their investments. These corporations have an outsized influence on the markets, including crypto, and their focus could set the tone for where the industry heads next.
As AI progresses, it’s worth watching whether crypto can keep up. However, some experts believe that AI and blockchain have significant synergies, which means that the growth of one can boost the other.
On the Flipside
- While Meitu’s pivot to AI seems promising, it’s essential to consider the risks involved. AI is a highly competitive field, and the company will face stiff competition from established players.
- The AI sector is subject to rapid changes, and staying ahead of the curve will require constant innovation and investment.
Why This Matters
For crypto traders, Meitu’s decision to diversify into AI indicates a potential shift in how institutions see crypto investments.Â
Read more about how stablecoin giant Tether also jumped into AI:
Tether Joins AI Race with $420M Nvidia GPU Investment
Read more about FTX’s staking of Solana tokens:
Is FTX Estate Betting on SOL with Its $150M Staking Move?
