According to Bankless, the challenge of achieving private AI through fully homomorphic encryption faces hurdles due to its distance from frontier scale application. However, the report suggests that the requirements for 'good enough' solutions have been reduced, potentially opening avenues for smaller models to address the private AI problem. The development indicates a possible shift in strategies for achieving privacy in artificial intelligence, focusing on more accessible and efficient models.

According to Bankless, the challenge of achieving private AI through fully homomorphic encryption faces hurdles due to its distance from frontier scale application. However, the report suggests that the requirements for 'good enough' solutions have been reduced, potentially opening avenues for smaller models to address the private AI problem. The development indicates a possible shift in strategies for achieving privacy in artificial intelligence, focusing on more accessible and efficient models.