The core idea behind the potential negative impact of generative AI in the Web3 space is relatively simple. Generative AI has the potential to change every aspect of how software and content are developed and consumed, from the infrastructure to the application layer. These days we are seeing every major technology and content provider incorporating generative AI into their platforms. If the core of that revolution is taking place outside Web3, it is likely to have an impact on the innovation, talent and funding gap between Web2 and Web3 technologies. Furthermore, if not addressed quickly, this gap is likely to continue expanding at a multi-exponential growth rate. The solutions to this problem are certainly far from trivial, but there are some first-principles ideas that can be explored to start addressing that gap.