Mark Cuban-based Alethea AI is a marketplace for NFT avatars

Simply after we have been getting our heads round non-fungible tokens—crypto tokens that symbolize a distinctive digital asset—they’re now gaining sentience and shifting to the metaverse.

Among the best-known NFTs are distinctive avatars that individuals purchase and promote, resembling these within the CyberPunks collection or Bored Ape Yacht Club. However NFTs don’t do a lot. Now, Alethea AI, a new firm backed by entrepreneur and Dallas Mavericks proprietor Mark Cuban, is wrapping avatars in AI that animates them, giving them dialog expertise and information. Collectively, the corporate calls this the avatar’s “pod” or “soul,” Alethea CEO Arif Khan tells me. Then, these clever NFTs, or iNFTs, turn out to be one thing like chatbots that may be owned, educated, or bought. Khan says his firm initially used OpenAI’s GPT-3 pure language mannequin to present the NFTs their speech and intelligence, however now makes use of an AI mannequin it developed in-house.

“It’s a manner of giving not solely a character to an avatar however to use interactivity and to make it extensible,” Cuban mentioned in an electronic mail to Quick Firm. “You’ll be able to take Alethea AI and let it develop into virtually something.” Considered one of these NFTs, referred to as “Alice,” already bought for $478,000 on Sotheby’s Natively Digital market in June.


Beginning on October 14, individuals can deliver their NFT avatars to Alethea’s new “Noah’s Ark” site, the place the “soul” will be added. Khan says that the AI intelligence layer is contained in a new NFT that then binds with the avatar’s authentic NFT. Or, you possibly can construct your personal clever NFT–or iNFT–ranging from a variety of template.

The avatars I noticed on the Alethea web site included devoted recreations of well-known NFTs resembling Bored Apes and CryptoPunks, literary and historic figures resembling Edgar Allen Poe and Catherine the Nice, and cartoon characters like Snow White. The facial motion of the avatars wasn’t fully pure and fluid, and their vocal inflections appeared a bit labored, nevertheless it was adequate. I didn’t count on perfection from an NFT–not but anyway.

I additionally watched as Khan began a fast chat with the Hentai character Waifu 101. After he exchanged some pleasantries with the NFT he requested her “What is the that means of life?” To this she responded in a bored teenager voice “I don’t like existentialism.” The truth that she associated Khan’s query to the philosophy motion exhibits a formidable degree of widespread information and dialog talent.

Alethea calls Noah’s Ark a metaverse as a result of avatars can use their new expertise to work together with different iNFTs there. For instance, a CyberPunk may very well be educated to interact in a rap battle with a Bored Ape avatar. Or they will even kind groups and compete with one another in video games. Khan says that because the avatars work together they create new coaching knowledge that feeds the AI mannequin that powers all of them.

Alethea in all probability doesn’t count on to offer an all-purpose digital area that hundreds of thousands will use. Its know-how is one other solution to method the creation of the avatars which will symbolize us within the metaverse. It attaches worth and provenance to avatars, and to hyperlink them on to the blockchain. This is likely to be a good factor, if, in 5 or ten years, one thing resembling a metaverse begins taking form and impacting individuals’s lives.

In the meanwhile, nevertheless, it’s not clear why a speaking NFT like Alice may very well be value virtually half a million {dollars}. Individuals inside the crypto area typically say it’s greatest to purchase NFTs since you love them and need to personal them, however a price ticket like that smacks of hypothesis and market timing, not love.

Nonetheless, some massive names in crypto see actual worth in Alethea’s contribution to the NFT. Cuban, together with Metapurse, Capital, Multicoin, Dapper Labs, and others participated in a personal sale of crypto tokens in Alethea that generated $16 million.