Expert's Take: Rewump Founder Explains Why DeepSeek Could Trigger An Investment Breakout Year For AI-Web3

2025 is shaping up to be a huge year for artificial intelligence, and as early as January, some of the world's biggest players have already made moves to prove that they're still in the game, especially after Chinese AI chatbot DeepSeek stunned U.S. tech stock markets.

Chinese AI startup DeepSeek stunned the tech industry when it launched its AI chatbot last month, which it claimed was developed with a much smaller funding than other similar AI models, such as OpenAI's ChatGPT.

For some tech leaders, DeepSeek's disruption is a reason for concern due to alleged national security risks it poses, but for others, it could be an opportunity to improve and build cutting-edge technology on a cheaper budget, should feasibility be proven.

In an exclusive with International Business Times, Sergii Malomuzh, the founder of rising Web3 incubator program Rewump, shared his thoughts on DeepSeek's entry into the fold and why it can be a catalyst for AI in Web3's investment "breakout year" in 2025.

The Case for an Early Advantage in the Emerging Segment

AI in Web3 has been on the rise in recent years, but 2024 became the year when it received much attention from the broader blockchain and tech sectors. The skyrocketing popularity of AI tokens in the cryptocurrency space further fueled interest in the emerging blockchain sub-sector.

There's also the work being done by Web3 innovators around agentic AI. "Web3 innovators laid the necessary foundation in 2024, marked with the emergence of AI agents, machine-learning-trained autonomous systems capable of performing a wide range of functions," Malomuzh told IBT.

How does DeepSeek's shocker come into play in all this? For Malomuzh, who has a Ph.D. in Law and M.Sc. in Entrepreneurship, AI in Web3 is positioned to become the central focus for many investors in 2025, and DeepSeek's launch could have affected investment interest.

"With DeepSeek demonstrating what is achievable even at a relatively lower cost, investors in Web3 are likely to pay more attention to AI agents this year to get an early advantage," he explained.

He expects the Web3 investment trend to shift this year from infrastructure and financial services to AI – possibly matching or outpacing billions invested in Web3 infrastructure in the previous year.

Which Key Trends Will Intertwine AI and Web3 Further in 2025?

Last year, the key trend that truly made a mark in AI and Web3 was cryptocurrency. AI tokens around decentralized AI networks were all the craze, but other trends may also emerge in 2025.

Malomuzh expects the following key trends to deepen the convergence between AI and Web3 this year:

• Decentralized AI ecosystems – He believes there will be an emphasis on "the true nature of blockchain systems as a decentralized hub for node running," particularly in training models for agentic AI.
• Tokenizing AI models – Most popular agents like ai16Z and Virtuals Protocol currently operate primarily as standalone applications, but Malomuzh projects more experimentation this year, including the potential "tokenization of AI models."
• Web3-centric AI tech – Web3 is known for its "continuous year-on-year innovation," so it wouldn't surprise Malomuzh if the industry brings forth first-of-its-kind use cases such as AI models designed to be more Web3-focused instead of developed for general tech.

Will Blockhain x AI be a Major Trend in 2025?

Every year, a certain trend rises above the rest in the broader tech space, and for many industry analysts, AI-blockchain projects may emerge as the year's top trend. Malomuzh said this projection is valid.

"The crypto industry has had a glimpse of what AI is capable of, and as a rapidly growing field, innovators will seek to explore its potential to the fullest. While we are still in the early stages of AI development in Web3, key companies, such as Tether, have pledged to dive into the sector this year. In addition, more usable and relatable products will emerge from existing AI and big data protocols, like Artificial Superintelligence, Near Protocol and others," he said.

Web3 has a legitimate chance to showcase how blockchain and AI can be game-changers, he noted. Also, Web3 developers are known for their grit. "Based on trends since Bitcoin's inception, Web3 innovators are ambitious, and will showcase this with AI this year," Malomuzh projected.

The Issue on Legalities

Every emerging technology comes with challenges, and as has been demonstrated with the U.S. Securities and Exchange Commission's (SEC) lawsuits against crypto and blockchain firms, legality is a critical aspect in Web3, especially as AI deepens its hold on the sector.

Malomuzh said chief among the legal hurdles around building on the Web3 and AI convergence is the risk of violating copyright laws as innovators jump in the quest to train as many datasets as possible. He noted how even AI giants such as OpenAI have faced challenges of this nature and as crypto-AI projects evolve, similar issues may arise.

There's also the matter of privacy – a critical factor in technology that some consumers are increasingly getting concerned about. In Web3, projects thrived under the core tenets of privacy protection on users' data. However, AI solutions need to learn from user behavior over time if they are to function optimally. The restrictions around data use in Web3 may pose some friction on privacy in the long term, Malomuzh pointed out.

"This legal concern might become pronounced in resolving some smart contract issues as the broader ecosystem evolves. While the fusion of AI and Web3 will complement each technology's flaws, the susceptibility to exploits could pose a significant challenge moving forward," he said.

Finally, regulatory concerns may also build walls around the hopes of AI in Web3 innovators. Laws are still evolving across the world, and it may take time before frameworks are established around the emerging segment.

Rewump's Role in the Revolution Toward Cutting-Edge Web3-AI Tech

Amid the evolution in the Web3-AI space, Rewump is at the center of helping create and develop products in Web3 by helping attract investments and also providing expertise in implementing projects "from concept to profitable product."

"I founded Rewump to give young teams a chance to bring their ideas to life and build a world where technology works for the better. We focus specifically on supporting Web3 startups that have viable ideas and developed MVPs but have yet to find their real customers or achieve product-market fit," Malomuzh said.

Rewump provides funding to help teams test their ideas and identify their target audience in the early stages of the incubator. It helps push progress for a project's next stage of growth so it can attract larger investments.

Through hands-on mentorship and expert guidance across various areas, including finance and legal affairs, Rewump is paving the way for promising projects to get the investments needed for their product to hit the market.

"I hope that Rewump will be one of the agents for change, helping founders use the potential of Web3 to create transformative products and services for a world where technology works for the better," Malomuzh said.