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 been lowered. The development suggests that smaller models could provide more immediate solutions to the problem of private AI, potentially bridging the gap until fully homomorphic encryption becomes viable at a larger scale. The report highlights a potential shift in focus towards more practical, near-term approaches to private AI implementation.

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 been lowered. The development suggests that smaller models could provide more immediate solutions to the problem of private AI, potentially bridging the gap until fully homomorphic encryption becomes viable at a larger scale. The report highlights a potential shift in focus towards more practical, near-term approaches to private AI implementation.