a16z plans to open a crypto-focused office in London and leads a $43M round in UK-based Gensyn, which offers a decentralized compute network for training AI

America's largest investor in crypto startups believes that the industry's future may be across the pond, and is opening …

Axios 2023-06-12 Dan Primack

Context & Ripple Effects

a16z's London move paired a crypto investment presence with backing for Gensyn's decentralized AI-training compute network. That combination put crypto-native financing and AI infrastructure in the same regional strategy.

The move was followed by OpenAI's plan for its first office outside the US in London and, later, a16z ran its Crypto Startup Accelerator in London. Together, the coverage frames London as a place where investors can cultivate both crypto and AI infrastructure companies.

First-order effects

a16z gains a London base for crypto dealmaking while becoming Gensyn's lead backer in a $43M round, giving the startup capital and a prominent investor relationship.
Gensyn can use the financing to pursue its decentralized compute-network model for AI training, placing it directly in the competition for AI compute infrastructure.

Second-order effects

The paired office and investment make London a more credible destination for crypto startups working on AI-adjacent infrastructure, increasing pressure on other investors to offer local capital and operating support.
Compute providers and AI developers gain another potential route to training capacity, though Gensyn must prove that a decentralized network can meet their technical and commercial requirements.

Third-order effects

If investors continue to fund compute networks through crypto-focused platforms, AI infrastructure finance could extend beyond conventional cloud and data-center ownership models.
London's appeal may increasingly rest on the overlap of AI talent, startup capital, and crypto experimentation rather than on any one sector alone—a pattern supported by later major AI startup expansions in the city.

The trend: Crypto venture capital is increasingly treating AI compute infrastructure as an adjacent investment category, with London emerging as a shared base for both ecosystems.

Discussion

@cdixon @cdixon on x
Big news to share: @a16z is expanding to the UK 🇬🇧 We plan to open our first international office in London later this year, and will host the next Crypto Startup School there in 2024. Why the UK? 👇 https://a16zcrypto.com/...
@fintechfrank Frank Chaparro on x
Statement from UK prime minister Rishi Sunak on a16z's expansion to the UK: https://twitter.com/... [image]
@alexandergerko Alex Gerko on x
Absolutely mad https://twitter.com/...
@alexandergerko Alex Gerko on x
Bloomberg wants me to talk to them and explain my https://twitter.com/... comment.Imagine subscribing to my twitter and still asking to comment further! Still, here you go: throwing government support behind the industry that is 99-100% fraud or bullshit or both is absolutely mad
@alive_eth @alive_eth on x
We are excited to announce that @a16zcrypto is leading @gensynai series A round 🔥 Gensyn is a marketplace protocol for compute for AI workloads. It connects devs building ML models with anyone who can contribute compute power for training those models 🧵 https://a16zcrypto.com/...
@tomfgoodwin Tom Goodwin on x
I swear UK Tech policy is being lead by someone who a couple of months ago brought a pile of old Wired Magazines from a car boot sale, and is now up to Nov 2020 https://twitter.com/...
@rishisunak Rishi Sunak on x
Great news that @a16z - one of the world's leading tech investment firms, is opening a new base here in London. Another huge vote of confidence in the UK as a place to build and grow tech businesses of the future. https://twitter.com/... [image]
@alexisohanian Alexis Ohanian on x
Big headline for a country to amplify about a VC opening offices. Statement. https://twitter.com/...
@sriramk Sriram Krishnan on x
🇬🇧 Really excited for @a16z's expanding to the UK with our first international office in London. And personally excited to be moving there later this year. https://twitter.com/...
@cdixon @cdixon on x
Crypto/web3 is still in the early innings, and needs clear regulations to provide an open pathway for startups to build constructive solutions, while protecting consumers and stamping out the harmful “casino” culture that has developed around crypto.
@cdixon @cdixon on x
The UK Prime Minister & policymakers across both parties see the promise of web3 and are committed to putting the right regulation and guardrails in place to protect consumers, foster innovation, and allow start-ups to flourish there. We're excited to help them with this effort. …
@klarnaseb Sebastian Siemiatkowski on x
Another example of UK taking the lead. Honestly I am always super impressed when I speak to UK politicians and regulators - thoughtful and smart! They were the first in the world to appoint an AI Minister! And will be the first to host a global summit on AI safety later this... h…
@smtuffy Sean Tuffy on x
The thing is, despite the rhetoric from the Government, there's no real evidence that the UK is some sort of crypto paradise. https://giftarticle.ft.com/...
@timccopeland Cope on x
It was interesting to see Brian Armstrong highlight that the UK has actually been pretty measured in its approach to crypto, in sharp contrast to the US wonder if the UK is now going to step up in adopting the asset class https://twitter.com/...
@sarthakgh Sar Haribhakti on x
Never seen a political leader of a country give a statement about expansion of a VC firm to their country https://twitter.com/...
@pmarca Marc Andreessen on x
BRITISH DYNAMISM https://twitter.com/... [image]
@graceonfootball Grace Robertson on x
Sometimes it's hard to place Rishi Sunak's very right wing views with his slick almost liberal presentation, but I think “crypto guy” pretty much covers his whole deal. https://twitter.com/...
@danprimack Dan Primack on x
a16z opens first-ever international office. partner @sriramk relocates to london. firm launching next crypto accelerator program in london. @cdixon suggests that uk regs are moving faster than us, and that some us companies may move across the pond. https://twitter.com/...
@josephmdurso Joey D'Urso on x
Bizarre that the PM is promoting this American funds' “crypto school”. They've been promoting crypto grifters and shills long after the industry lost all credibility. Brits will get scammed because of this. https://twitter.com/...
@eladgil Elad Gil on x
UK is having its “How can I help” Miami moment for crypto.... https://twitter.com/...
@yugacohler @yugacohler on x
The contrast between Prime Minister Sunak's and President Biden's position on crypto is mind-boggling. The decision of this administration to alienate crypto in the US will be remembered as a generational policy blunder, costing billions of dollars in lost economic output. https:…
@cdixon @cdixon on x
Finally, we will remain heavily invested in the U.S. We continue to be committed to working with U.S. policymakers and regulators to push for more regulatory clarity for crypto startups here.
@joemccann @joemccann on x
Are US politicians paying attention? https://twitter.com/...
@rachaelrad Rachael Horwitz on x
A lot of folks in DC have told us that the understanding of crypto as a technology among elected officials cuts along generational lines more than partisan lines. You can see the difference here in leadership from Sunak vs our gerontocracy. https://twitter.com/...
@thestalwart Joe Weisenthal on x
Me in the Odd Lots newsletter a week ago. (Left) A16Z today. (Right) https://www.bloomberg.com/... https://a16zcrypto.com/... [image]
@rachaelrad Rachael Horwitz on x
London became “crypto friendly” by .... regulating it. Think about that. America 🤦🏻‍♀️🤦🏻‍♀️🤦🏻‍♀️🤦🏻‍♀️ https://twitter.com/...
@mayazi Maya Zehavi on x
A16Z leaning into taking crypto to the UK, says how bullish the new UK crypto framework is compared to Gary's crusade https://twitter.com/...
@packym Packy McCormick on x
.@a16zcrypto is heading across the pond 🇬🇧 The US doesn't operate in a vacuum, and it's cool to see other countries competing for business. A little healthy competition makes everyone better. https://twitter.com/...
@axios @axios on x
Andreessen Horowitz, America's largest investor in crypto startups believes that the industry's future may be in the U.S., and is opening its first international office in London to take advantage of the opportunity https://www.axios.com/...
@functi0nzer0 Laurence on x
it's called u16k now actually https://twitter.com/...
@adamscochran Adam Cochran on x
Dear US law makers: Your vague, divided and offensive stance on crypto policy has caused the most successful American VC fund to focus attention elsewhere. They've funded the companies that creates millions of jobs and billions in taxes, and you're fumbling that. Do better. https…
@prhillmann Patrick Hillmann on x
This is a win for the UK. Congrats to @a16z and the UK Crypto community. https://twitter.com/...
@fiskantes @fiskantes on x
If UK plays it cards right it might as well reclaim some of its lost financial power Being the only western country of significance that actively aims to attract crypto talent and capital is probably a good strategy https://twitter.com/...
@cdixon @cdixon on x
We're excited about fostering the growth of crypto and web3 globally, and as always, we're excited to keep building. 👷🛠👷‍♀️ https://a16zcrypto.com/...

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