Arbitrum Foundation, a Cayman Islands-based, non-profit organization committed to developing and nurturing the Arbitrum ecosystem, announced that it had withdrawn from the Nvidia-sponsored Ignition AI Accelerator program.
This follows the chip maker’s request to remain anonymous in any public statements. Other cryptocurrency companies, like the Aptos Foundation, which backs the Layer 1 Aptos blockchain, have partnered with the Ignition AI accelerator.
The Arbitrum Foundation opposes Nvidia’s condition despite the benefits behind the agreement
According to previous reports, Nvidia terminated the agreement, which would have made Arbitrum the sole Ethereum partner for the Ignition AI Accelerator program, which Tribe and Nvidia supported. Moreover, the program would have given the network cloud credits and guidelines for developing AI.
However, later, the Arbitrum Foundation claimed that Nvidia had recently changed its mind and stated that it was open to collaborating with Arbitrum, provided that the chipmaker was not named in any announcements about cryptocurrency that were made public.
This condition seemed to irritate the Arbitrum Foundation, causing it to leave the Nvidia-backed Ignition AI Accelerator program. In this regard, some had a speculative conclusion that there could be secondary reasons for the withdrawal, claiming that Arbitrum was removed from the AI Ignition Accelerator program, which generated further discussion.
In response, a Foundation representative explained the primary reason for the Arbitrum Foundation’s decision to step away, saying that “Arbitrum was not removed from the AI Ignition Accelerator — the team made the decision to disengage after Nvidia asked to remove its brand from crypto-related announcements, signaling a lack of long-term commitment.”
Additionally, in a statement, the Ignition Accelerator claimed that a press release that was embargoed and sent to CoinDesk, claiming that Nvidia “still explicitly exclude[s] crypto-related projects,” contained false information. According to the statement, the Arbitrum Foundation had respectfully asked to withdraw from that collaboration with the Ignition AI Accelerator.
The Arbitrum Foundation said that since it was dedicated to working with partners positioned to support the acceleration of blockchain innovation, the decision to withdraw from the AI Ignition Accelerator was a “sound business decision.”
A last-minute cancellation of a cryptocurrency announcement
On April 25, reports revealed that Arbitrum, the Layer 2 network hosting a growing number of decentralized AI platforms, was preparing a major announcement: it had been chosen as the exclusive Ethereum partner for Nvidia’s new Ignition AI Accelerator, a spinoff of the Inception program offering infrastructure credits and mentorship to promising AI startups.
However, in an email, an Arbitrum representative stated that Nvidia had sent them a last-minute message requesting that they pause the announcement, but they had not offered an explanation.
Following this, Coindesk reports revealed that even though the cryptocurrency space was always trying to catch up to the rapidly expanding AI industry, it also highlighted that Nvidia’s programs specifically excluded cryptocurrency-related projects.
The report also claimed that this was not something new. While it may frustrate cryptocurrency developers wishing to hook up with Nvidia’s system, it was consistent with the company leadership’s previous attempts to distance themselves and, occasionally, disparage the crypto sector.
Coindesk explained scenarios like when Nvidia was fined $5.5 million for the effect that cryptocurrency mining had on GPU sales, specifically the drop in Ethereum’s price. Aside from that, Nvidia CTO Michael Kagan also commented in a 2023 interview that he doubted “crypto is good for the world.” He even went so far as to say it didn’t serve society’s best interest and compared it to AI devaluing crypto.
In response to this, the Ignition Accelerator claimed that the above was not true, explaining that Arbitrum’s planned announcement of a partnership with Nvidia was postponed for reasons that the chip manufacturer did not disclose.
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