The Problem

In 2024, global spending on decentralized cloud infrastructure is starting to emerge as a response to the $679 billion spent on centralized services. As AI and compute demand grow, the pressure to adopt alternatives is mounting.

Cloud and AI infrastructure are no longer neutral utilities. They are strategic chokepoints that influence everything from pricing to innovation itself.

Centralization Is Becoming a Liability

A highly centralized cloud and AI ecosystem comes with real consequences:

• • Runaway pricing: Developers and startups face mounting infrastructure costs that threaten scalability.
  • Opaque systems: Proprietary AI models operate as black boxes, offering little transparency or accountability.
  • Lock-in risk: Companies find themselves stuck within restrictive ecosystems that limit choice and flexibility.
  • Slowed innovation: Corporate interests often take precedence over openness, ethics, or experimentation.

As artificial intelligence becomes more foundational to the global economy, the limitations of centralized models are becoming impossible to ignore.

What does decentralized infrastructure mean?

Unlike distributed infrastructure, which spreads computing and storage across multiple nodes but typically remains under the control of a single company, decentralized infrastructure removes centralized authority entirely. In this model, independent nodes operated by unrelated individuals, organizations, or companies collaborate on equal terms using transparent and consensus-driven rules.

The result is a system that not only offers resilience and fault tolerance, as distributed systems do, but also delivers stronger resistance to censorship, eliminates reliance on intermediaries, and often reduces costs. Decentralized infrastructure creates an open and collaborative network where no single entity controls operations or represents a potential point of failure.

Decentralized Alternatives Are Gaining Momentum

A new generation of infrastructure providers is emerging to meet the moment. These platforms leverage distributed computing models, peer-to-peer marketplaces, and open governance to deliver a fundamentally different approach.

Key advantages include:

• • Lower costs: Access to compute resources through decentralized networks can reduce expenses by up to 80 percent.
  • Increased reliability: Distributed systems are resilient by design and avoid single points of failure.
  • Greater transparency: Open-source models and auditable infrastructure create more trustworthy systems.
  • User ownership: Participants retain control of their data, digital identities, and contributions to the network.

These solutions are not hypothetical. Several are already live and supporting real-world workloads, particularly in artificial intelligence and blockchain-based projects.

2025 Is a Turning Point

This year, several trends are accelerating adoption of decentralized infrastructure:

• • Pricing pressure: High cloud costs are pushing developers to seek alternatives that offer similar performance at a fraction of the price.
  • AI governance concerns: As awareness grows around biased or opaque AI decisions, there is rising demand for systems that prioritize explainability and accountability.
  • Improved tooling: Decentralized platforms have reached a maturity level that allows for seamless deployment at scale.
  • AI agent growth: The rise of autonomous agents is creating a new category of demand that favors flexible, open networks over rigid centralized systems.

These forces, combined with ongoing regulatory scrutiny of Big Tech, are shifting market behavior in a measurable way.

What Decentralization Means for Investors

At Sarson Funds, we see decentralized infrastructure as a key investment theme for the coming decade. The opportunity lies in gaining exposure to projects that:

• • Monetize compute, storage, and AI services through digital assets.
  • Offer governance participation in network direction and economics.
  • Operate in alignment with open systems and public interest.

The shift away from hyperscaler dependence is not a rejection of cloud computing. It is a necessary evolution. As the AI economy grows, the infrastructure behind it must become more transparent, accessible, and resilient.

Conclusion

The cloud as we know it is being redefined. What was once a market controlled by a few is now opening to many. Investors who understand the stakes and identify the right platforms early will be well positioned for the next wave of growth in decentralized technology.

Disclosures: This article is for informational purposes only and should not be considered financial, legal, tax, or investment advice. It provides general information on cryptocurrency without accounting for individual circumstances. Sarson Funds, Inc. does not offer legal, tax, or accounting advice. Readers should consult qualified professionals before making any financial decisions. Cryptocurrency investments are volatile and carry significant risk, including potential loss of principal. Past performance is not indicative of future results. The views expressed are those of the author and do not necessarily reflect those of Sarson Funds, Inc. By using this information, you agree that Sarson Funds, Inc. is not liable for any losses or damages resulting from its use.