AI tokens Bittensor, Render, Grass plunge after key Microsoft news

Artificial intelligence-focused cryptocurrencies continued their downward trend after Microsoft slowed its data center expansion plans.

Bittensor (TAO) token crashed by 10% in the last 24 hours and 24% in the last seven days. Similarly, Render Token (RNDR) fell by 10% and 20% in this period, while Grass (GRASS) crashed by 20%. The market cap of all AI tokens tracked by CoinGecko fell by 10% in the last 24 hours.

The same downtrend has affected most AI-related stocks. NVIDIA, the largest player in the AI space, has fallen more than 30% from its 2024 high. AMD, which holds the second-largest market share in AI chips, has dropped to $98, down 47% from its highs this year. Other names like C3.ai and SoundHound have also plunged.

AI tokens’ drop was in line with the performance of Bitcoin (BTC) and other altcoins after Donald Trump’s Liberation Day speech.

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Bittensor, Grass, Render crash as Microsoft halts data center development

They also dropped after Bloomberg reported that Microsoft was halting or delaying data center developments in the UK, US, Australia, and Indonesia.

This development suggests the AI industry may not be expanding as quickly as some analysts anticipated. The news is especially notable given Microsoft’s leadership in AI commercialization through its partnership with OpenAI, the company behind ChatGPT.

Microsoft is also one of the world’s largest data center operators, spending over $74 billion annually on data infrastructure. In a recent report, TD Cowen analysts warned of a potential oversupply in data centers relative to current demand.

The AI boom has attracted many developers within the crypto industry. Bittensor, one of the leading projects, offers a decentralized marketplace for AI learning models. Miners contribute computing resources and earn TAO, its native token.

Render, which exists on Solana (SOL), provides a decentralized marketplace where users lease GPU power to developers. Grass, by contrast, allows users to earn tokens simply by installing an app on their computers, monetizing passive data collection for companies.

AI meme coins have also crashed as the hype dropped. Tokens in the Virtuals Protocol ecosystem like GAME, Luna, aixbt, and Iona have lost hundreds of millions of dollars in value as the tokens crashed. GAME’s valuation has dropped from $350 million in January to just $13 million today.

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