According to Bankless, the challenge of achieving fully homomorphic encryption at a frontier scale remains years away. However, the threshold for achieving "good enough" solutions in private AI may have decreased. The development suggests that smaller models could potentially offer more immediate solutions to the problem of private AI, implying progress in the field of data encryption and privacy-preserving computation.

According to Bankless, the challenge of achieving fully homomorphic encryption at a frontier scale remains years away. However, the threshold for achieving "good enough" solutions in private AI may have decreased. The development suggests that smaller models could potentially offer more immediate solutions to the problem of private AI, implying progress in the field of data encryption and privacy-preserving computation.