VENC

Private AI has become a meaningful commercial business

Some investors view Venice's growth as evidence that private artificial intelligence (AI), meaning AI that does not retain or expose user conversations, is becoming a real business. Venice reports that it is profitable, that its registered user base has multiplied, and that daily use of its application programming interface (API) has compounded over a short period.¹ An API is the connection that lets other software use Venice's AI.

Venice's API is compatible with OpenAI's, so developers can move existing applications onto the platform, and wallet-based payments let AI agents buy inference (the work an AI model does to produce an answer) directly. Because Venice builds on existing AI models rather than financing their development, it can focus spending on serving demand. That gives it a different cost structure from frontier AI developers, the companies building the most advanced models.

The counterweight is capacity. Venice's investment in graphics processing units (GPUs) and data centers makes efficient use of that capacity increasingly important. Revenue figures remain unaudited, and sustaining profitability depends on retaining paying customers at a declining cost of acquisition as competition intensifies.

Venice is building a differentiated position in private AI inference

As AI becomes part of everyday work, businesses face a growing challenge: using powerful models without exposing confidential contracts, financial records, or proprietary code. Apple has recognized the same problem, expanding its privacy-protected AI infrastructure to Google Cloud in 2026 so complex requests can be processed without exposing users' data.²

Venice applies a similar principle by offering access to existing AI models with different levels of privacy protection. Its private option does not retain conversations, its more secure options prevent server operators from accessing user data during processing, and its most secure mode lets users independently verify those safeguards.³

Some investors argue this opens a commercial opportunity among businesses handling sensitive information, from law firms reviewing client documents to financial institutions analyzing confidential records, and that Venice could turn that demand into recurring subscription and API revenue. Venice's strongest protections currently cover only selected models for paying subscribers, not third-party frontier models. Expanding that coverage could help Venice win more demanding customers before larger AI providers close the privacy gap.

VVV's economics are shifting from dilution toward value capture

Some investors view Venice as strengthening the link between its business growth and demand for its token, VVV. Developers can lock staked VVV (VVV deposited to earn rewards) to create a second token, DIEM, and each staked DIEM provides $1 in daily AI credits.⁴

Venice also directs a portion of subscription payments and 5% of API credit purchases to VVV buybacks and burns, in which Venice buys VVV and permanently removes it from circulation.⁵ At the same time, through a step-down series of reductions, annual issuance of new VVV has fallen 86%, from 14 million tokens at launch in January 2025 to 2 million tokens from October 1, 2026 (Venice).^3,6 Together, these mechanisms mean growing usage could create more demand for VVV while less new supply enters circulation.

The shift is still in its early innings. Outstanding DIEM has not grown alongside company revenue, and recurring burns remain below issuance. VVV also carries no equity or governance rights, so holders depend on company-controlled mechanisms rather than a direct claim on Venice's earnings. The investment case strengthens only if growing inference demand translates into sustained VVV locking and buybacks, eventually allowing burns to outpace new issuance.

Why access Venice Token through an ETP?

For investors who have decided they want Venice Token exposure, the ETP structure addresses the main practical barrier of direct purchase: complexity.

Buying Venice Token directly requires opening a separate crypto exchange account, managing custody of the Venice Token, and in some cases handling private keys (the digital passwords that control access to a crypto asset). Losing or mismanaging private keys means losing access to the Venice Token permanently. For a position within a broader investment portfolio, this operational complexity may not be proportionate to the size of the allocation.

VENC trades through the same brokerage account an investor already uses for equities or other funds. There is no separate crypto account to open and no private keys to manage.

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Footnotes

1. Introducing Diem as Tokenized Intelligence: The Next Evolution of VVV (Venice, August 20, 2025) https://venice.ai/blog/venice-raises-65-million-series-a
2. Expanding Private Cloud Compute: Apple Security Research https://security.apple.com/blog/expanding-pcc/
3. Venice AI FAQs https://venice.ai/faqs/all
4. Introducing Diem as Tokenized Intelligence: The Next Evolution of VVV (Venice, August 20, 2025) https://venice.ai/blog/introducing-diem-as-tokenized-intelligence-the-next-evolution-of-vvv
5. Venice Development Update: October 2025 https://venice.ai/blog/venice-development-update-october-2025
6. Venice cuts annual VVV emissions to 2 million as deflationary push continues (Crypto Briefing, October 1, 2026) https://cryptobriefing.com/venice-cuts-vvv-emissions-2-million/