Talos has introduced the first AI-managed crypto treasury on the Arbitrum network, a Layer 2 solution for Ethereum. This innovative protocol aims to enhance DeFi treasury management by addressing inefficiencies caused by fragmented governance and slow decision-making processes. Currently, the project manages $2.8 million across six active strategies, boasting a 22.9% annualized performance. Despite the promising results, Ethereum co-founder Vitalik Buterin has expressed concerns about the use of AI in such applications. He highlighted potential risks, including vulnerabilities to manipulation and data leaks, which could pose significant challenges to the security and integrity of AI-managed systems.