According to Bankless, the challenge of achieving private AI through fully homomorphic encryption may be addressed by the emergence of smaller models. The report suggests that the requirements for "good enough" solutions have been reduced. Fully homomorphic encryption, which allows computations on encrypted data, is still years away from being implemented at a frontier scale. The development of smaller models could provide a more immediate path toward private AI, potentially impacting various sectors where data privacy is paramount.

According to Bankless, the challenge of achieving private AI through fully homomorphic encryption may be addressed by the emergence of smaller models. The report suggests that the requirements for "good enough" solutions have been reduced. Fully homomorphic encryption, which allows computations on encrypted data, is still years away from being implemented at a frontier scale. The development of smaller models could provide a more immediate path toward private AI, potentially impacting various sectors where data privacy is paramount.