According to Bankless, the challenge of private AI may be addressed through smaller models. The report suggests that fully homomorphic encryption, a solution for maintaining data privacy, is still years away from being implemented at a frontier scale. However, the requirements for achieving "good enough" privacy have been reduced, potentially opening the door for more immediate solutions. The development suggests progress in balancing AI capabilities with data privacy.

According to Bankless, the challenge of private AI may be addressed through smaller models. The report suggests that fully homomorphic encryption, a solution for maintaining data privacy, is still years away from being implemented at a frontier scale. However, the requirements for achieving "good enough" privacy have been reduced, potentially opening the door for more immediate solutions. The development suggests progress in balancing AI capabilities with data privacy.