FutureMoney Group, an Asia-based venture capital firm focused on decentralized physical infrastructure networks (DePIN) and artificial intelligence, sees immense potential in combining these two cutting-edge technologies. In this interview, co-founders Steven Li and Eo Hao share their insights on the current DePIN landscape and how it intersects with AI to expand Web3 capabilities.

According to Li, FutureMoney has strategically invested across various DePIN sub-sectors to deeply understand this emerging ecosystem's development. Key characteristics they've identified include:

DePIN represents Web3 extending into the real world, bridging digital and physical realms.
Compared to other blockchain niches like Bitcoin ecosystems or modular chains, DePIN is more easily grasped by traditional investors and users.
There is significant overlap between DePIN and AI, with these tracks converging.
DePIN closely integrates hardware like mobile devices, vehicles, and mining rigs.
The core DePIN narrative combines hardware and tokenized incentives. Adding AI capabilities unlocks new potential like DePIN finance (DePINFi) and AI finance (AIFi).

Hao explained FutureMoney was attracted to DePIN as they believe after multiple crypto bull markets, overall Web3 valuations have expanded tremendously. With a Bitcoin ETF approved, bridging blockchain to the physical world became an imminent necessity that DePIN directly addresses.

Additionally, some of FutureMoney's own LPs include major Asian hardware manufacturers of electric vehicles and crypto mining operations publicly listed in the US. This hardware focus aligns with DePIN's integration of blockchain and physical infrastructure.

So far, FutureMoney has launched several key DePIN investment vehicles and initiatives:

DePIN Surf: An early-stage fund investing in over 20 alpha projects with low market caps that have issued tokens.
DePIN Index: A portfolio of 24 established, high-quality DePIN projects like RNDR, Theta Network, and Nosana. This index has nearly doubled in value since inception.
Major investments: Taking sizable equity stakes in around 25 companies including PowerPod, JDI, GEDONET and ETHStorage.

According to Li, major milestones include launching the world's first DePIN index product, being recognized by data provider Messari as a leading Asian DePIN-focused VC, and forming strategic partnerships with the IoTeX blockchain foundation and major Chinese hardware conglomerates supplying components to Apple and Tesla.

While sectors like Bitcoin already represent trillion-dollar markets, Li firmly believes DePIN will unleash massive development potential and wealth creation by decentralizing and tokenizing physical infrastructure on a global scale.

Hao highlighted how FutureMoney's edge stems from being an early mover capitalizing on the convergence of DePIN and AI - two generational technology shifts poised to reshape numerous industries. As these tracks merge, opportunities will emerge around DePINFi, AIFi, and fusing tokenized hardware ecosystems with intelligent algorithms and automation.

The firm aims to back startups pioneering novel applications at the intersection of decentralized infrastructure and artificial intelligence. Their portfolio already covers DePIN use cases like wireless connectivity, IoT device management, mobility solutions, storage networks and more. Layering in AI capabilities to optimize these blockchain-based infrastructure services could unlock new levels of efficiency and utility.