In a rapidly evolving technological landscape, the convergence of artificial intelligence (AI) and cryptocurrency is taking center stage, particularly in Silicon Valley. With the debut of ChatGPT in 2022, numerous startups have sprung up in an attempt to fuse these two domains, although outcomes have varied substantially. Among them, Kite, a startup dedicated to developing a blockchain solution aimed at facilitating communication between diverse AI applications, has managed to capture the attention of prominent venture capital firms.
On Tuesday, Kite announced an impressive $18 million funding round, spearheaded by PayPal Ventures and General Catalyst. The Series A round also saw participation from respected investors including 8VC, Samsung Next, and Alumni Ventures, who collectively underscore the potential Kite holds in the burgeoning market. Chi Zhang, cofounder and CEO of Kite, opted not to disclose the company’s valuation or specify whether the funding was purely equity-based or included token warrants for a future cryptocurrency.
This recent funding follows an earlier seed round that had gone undisclosed, bringing Kite’s total fundraising to $33 million to date. Chi Zhang articulated her vision for a radically different shopping experience in the future, stating, “The normal way for us to do shopping at the moment is we go to the Amazon website or Shopify store and shop across the store, find the products. But in the future, it’s all going to be automated.” She envisions a landscape where users can interact with AI applications seamlessly, without the need to navigate multiple platforms.
Kite’s funding comes amidst heightened interest in AI agents, which are increasingly being developed to perform specific tasks rather than serving as versatile, all-encompassing tools. Unlike traditional large language models that operate independently, these new AI agents can interact with various applications, enabling functionalities such as automated shopping. For instance, some firms have crafted AI agents that can browse items on platforms like Amazon, presenting users with tailored purchasing options.
Alan Du, a partner at PayPal Ventures, noted the experimental nature of current AI agents, suggesting that substantial infrastructure development is necessary for such technology to reach its full transformative potential. This is precisely where Kite aims to step in. Formerly known as Zettablock, the startup focuses on building the necessary infrastructure to foster interaction between AI agents without human oversight.
Zhang, equipped with a doctorate in statistics from the University of California, Berkeley, envisions an interconnected internet where AI entities can communicate and validate their identities autonomously. She posits that a shared database to authenticate agents—distinguishing a legitimate representative of Amazon from one of OpenAI—is crucial for establishing trust in these interactions. Consequently, Kite is committed to developing a dedicated blockchain that addresses this requirement.
One of Kite’s initial endeavors is to create a mechanism allowing users to instruct ChatGPT to locate and purchase items from platforms like Shopify, all via a simple text interface. “I’m very excited about the future, rather than worried about competition at the moment,” Zhang expressed, emphasizing her belief in the vast potential that lies ahead in the “agentic era.”
As the intersection of AI and cryptocurrency continues to generate interest and investment, Kite positions itself at the forefront, ready to shape the future of autonomous interactions in a decentralized digital landscape.
