Kite AI Secures $18 Million in Series A Funding to Revolutionize AI Agent Payments

Kite AI, a groundbreaking Layer 1 (L1) blockchain company, has raised $18 million in a Series A funding round co-led by PayPal Ventures and General Catalyst. This achievement brings the company’s total funding to $33 million, signaling a strong endorsement of its mission to build cutting-edge infrastructure for autonomous artificial intelligence (AI) agent payments. The new capital will propel Kite AI's efforts to integrate traditional Web2 platforms with blockchain technology and establish itself as a cornerstone of the emerging “agent economy,” where autonomous AI entities execute transactions and operations independently.

Ushering in the ‘Agent Era’ of the Internet

The rise of tools like ChatGPT has ushered in the “agent era,” a transformative phase where autonomous AI systems perform tasks and make decisions based on human directives. Despite their growing prominence, existing Web infrastructure remains ill-equipped to support secure, scalable, and seamless interactions between AI agents. These inadequacies have created barriers to fully realizing the potential of autonomous systems in modern digital ecosystems.

Kite AI addresses these limitations by introducing an advanced blockchain-based framework designed to facilitate secure, efficient economic interactions between AI agents. This infrastructure provides essential features such as verifiable identities, programmable governance, and trustless financial settlement mechanisms.

Pioneering Technologies: Kite Passport and Proof of Artificial Intelligence (PoAI)

At the heart of Kite AI’s technological innovation are two flagship offerings: the Kite Passport and the Proof of Artificial Intelligence (PoAI) mechanism.

Kite Passport: Decentralized Identity and Access Management for AI Agents

The Kite Passport is a decentralized identity (DID) and access control system built on blockchain technology, designed to give users full control over their AI agents. Through this secure digital framework, users can set customized operational parameters for their agents. For example, a travel assistant AI can be programmed to:

• Spend no more than $500 using PayPal USD (PYUSD) stablecoins.
• Restrict purchases to pre-approved airlines.
• Compare prices across three platforms before finalizing a transaction.

This sandboxing method reduces risks of unauthorized transactions, whether caused by hacks, malfunctions, or other vulnerabilities.

Proof of Artificial Intelligence: Incentivizing Quality Contributions

The PoAI mechanism is a proprietary consensus and rewards system aimed at fostering high-value contributions within the AI economy. PoAI transparently records every participant’s role in the AI value chain—including data providers, developers, and coordinating agents—on-chain. This system ensures fair compensation for contributors while incentivizing the development of robust AI resources, thereby strengthening the overall ecosystem.

E-Commerce Integration: Collaborating with PayPal and Shopify

Kite AI has chosen e-commerce as its initial market focus, leveraging PayPal’s and Shopify’s vast merchant networks. Through the “Kite Agent App Store,” e-commerce merchants can showcase their products, enabling AI shopping agents to autonomously locate and finalize transactions on behalf of consumers.

Here’s how it works: A consumer instructs their AI assistant to “find the Aeroglide X1 running shoes under $150 at the best price.” The AI activates its Kite Passport, communicates with other agents via the app store, and identifies the optimal deal. The transaction is executed transparently and securely through the blockchain, with PYUSD funds automatically transferred to the seller upon completion. This process eliminates the need for human intervention while ensuring a seamless shopping experience.

Testnet Achievements and Planned Mainnet Launch in 2025

Kite AI has already showcased exceptional progress during its testnet phase, demonstrating widespread adoption and scalability. Between February and May 2023, the platform experienced a remarkable surge in daily agent calls—from 6,000 to 16 million—a staggering 2,688% increase. Cumulatively, over 1.9 billion interactions have been processed to date. The testnet also attracted 20 million users, generated 51 million blockchain addresses, and logged more than 300 million transactions.

Currently in its final testnet phase, Kite AI is preparing to launch its mainnet on Avalanche’s (AVAX) C-Chain by Q4 2025.

Shaping the Future of the AI Agent Economy

Backed by leading investors such as PayPal Ventures and General Catalyst, Kite AI is poised to play a pivotal role in shaping the AI-driven agent economy. By bridging blockchain technology with the rapidly evolving needs of autonomous AI agents, the company seeks to position itself as a foundational infrastructure provider in this transformative digital era.

As Kite AI advances toward its ambitious goals, industry stakeholders are keeping a close watch on its progress. With its innovative solutions and strategic focus on the e-commerce sector, Kite AI holds significant potential to revolutionize how AI systems interact, transact, and contribute to the broader economy.