Grayscale has launched the Artificial Intelligence Crypto Sector, grouping 20 AI-related tokens with a combined market capitalization of approximately $21 billion as of May 2025, up from $4.5 billion in early 2023. The largest project by market cap in the new sector is Bittensor (TAO), which is preparing for its first token halving and has seen rising adoption of its subnet infrastructure. The sector includes platforms for AI development such as Bittensor and Near, tools and resources like Akash for decentralized computing, and application-layer projects including Virtuals and Kaito. Grayscale offers exposure to some of these assets through private placement vehicles like the Grayscale Bittensor Trust and Decentralized AI Fund. Recent activity in the AI crypto space includes several new token listings and partnerships. Binance Alpha is set to list Assisterr AI (ASRR) on May 30, following a $1.7 million pre-seed funding round, and LayerEdge (EDGEN) on June 2. Reddio (RDO), a high-performance Ethereum Layer 2, will be featured as Binance Wallet's next Token Generation Event project on May 29. Bybit is offering an 850,000 ASRR prize pool. The AI crypto market has experienced a fivefold increase in sector market cap over two years. Bittensor's TAO remains the largest AI asset by circulating market cap, with 7% of its supply now allocated to subnets after the dTAO upgrade. Sogni AI, which offers decentralized creative AI tools, has over 360,000 users and has generated more than 72 million images, supported by $2 million in funding. Assisterr AI supports over 26,000 AI agents and 5 million users. Strategic partnerships are also shaping the sector, with collaborations announced between AIxBlock and Hive Intelligence, SocialGrowAI and HeLa Labs, BlockAI and Aster AI, and others. These partnerships aim to enhance AI infrastructure, data accessibility, and decentralized application capabilities across blockchain networks.