According to Bankless, the challenge of achieving private AI through fully homomorphic encryption may be addressed by smaller models. The report suggests that the requirements for "good enough" solutions have decreased, potentially opening new avenues for private AI development. Fully homomorphic encryption, which allows computations on encrypted data, is still years away from large-scale implementation. However, this development indicates progress in making private AI more accessible in the near term.

According to Bankless, the challenge of achieving private AI through fully homomorphic encryption may be addressed by smaller models. The report suggests that the requirements for "good enough" solutions have decreased, potentially opening new avenues for private AI development. Fully homomorphic encryption, which allows computations on encrypted data, is still years away from large-scale implementation. However, this development indicates progress in making private AI more accessible in the near term.