KITEAI Secures $18M to Build the Agentic Internet
KITEAI Secures $18M to Build the Agentic Internet
Key Takeaways
- KITEAI raised $18M in Series A funding led by PayPal Ventures and General Catalyst.
- The startup is building the foundational infrastructure for the “Agentic Internet.”
- Its platform offers identity, governance, and stablecoin payments for AI agents.
KITEAI, a blockchain startup at the intersection of AI and crypto, has closed an $18 million Series A funding round. PayPal Ventures and General Catalyst led the raise, joined by a strong lineup of investors including 8VC, Samsung Next, Alumni Ventures, and others.
This round brings KITEAI’s total funding to $33 million, following a previously undisclosed seed round. The company did not reveal its valuation or whether the deal involved equity, token warrants, or a mix of both.
But the goal is clear. KITEAI is on a mission to build the backbone for what it calls the “Agentic Internet.”
Why This Matters
AI agents are growing fast. They are programs that can act independently, connect with different applications, and complete tasks without constant human input. Think of them as digital assistants that do more than answer questions. They can shop, trade, code, and coordinate with other agents.
Today, AI systems often work in isolation. Large language models like GPTs or Gemini are powerful but mostly live on servers, with limited direct interaction with other systems.
KITEAI wants to change that. By building a blockchain-based infrastructure, it aims to give these agents a shared digital space with identity verification, governance controls, and native stablecoin payments. The result? Agents that can authenticate, transact, and coordinate safely without intermediaries.
The Vision: An Agent-First Internet
KITEAI calls this vision the Agentic Internet. It imagines a world where autonomous AI agents become the main interface for digital life. Instead of browsing websites, users might rely on agents to shop, negotiate deals, or manage tasks.
KITEAI provides three main building blocks for this new world:
- Cryptographic identity for AI models, agents, and services.
- Programmable governance to control permissions and spending rules.
- Native stablecoin payments with near-zero fees for instant transactions.
Some of this is already live. KITEAI has integrated with Shopify and PayPal merchants. AI shopping agents can now browse products and settle payments using stablecoins.
Big Investors, Big Ambitions
The funding round drew support from some of the biggest names in tech and venture capital. Alongside PayPal Ventures and General Catalyst, backers include Samsung Next, Vertex Ventures, Hashed, HashKey Capital, Dispersion VC, Avalanche Foundation, Animoca Brands, Alchemy, and more.
Angel investors bring extra expertise. Notable names include Evan Cheng of Mysten Labs, Hao Min from Circle, Frank Chang from Uber, and executives from Nasdaq, AWS, OpenAI, and Ripple.
Alan Du, partner at PayPal Ventures, believes this kind of infrastructure is necessary for the AI agent economy to scale.
“There’s a lot more infrastructure building that needs to happen,” Du said. “Agents can become transformative, but the base layer must come first.”
Proof of Artificial Intelligence
At the heart of KITEAI’s approach is a system called Proof of Artificial Intelligence (PoAI). It’s a framework designed to measure and reward real contributions within the network. Instead of just running agents, KITEAI wants a transparent way to verify and incentivise their actions.
This aligns with blockchain’s core principle, which is decentralisation with accountability.
A Market Ready to Explode
The potential market for AI agents is massive. Analysts project it could reach $240 billion within the next decade. If KITEAI succeeds, it will sit at the center of this ecosystem. Its infrastructure would allow agents to interact across platforms, manage payments seamlessly, and maintain trust without centralized control.
CEO Chi Zhang sees a future where AI handles tasks end-to-end. “Right now, we shop by visiting websites like Amazon or Shopify,” Zhang said. “In the future, this will be automated. Users won’t need to leave platforms like ChatGPT. Agents will handle everything.”
What’s Next for KITEAI?
KITEAI invites developers, businesses, and AI enthusiasts to join its ecosystem. The startup has launched a testnet and offers ways for the community to participate through its website, Discord, and developer tools.
As autonomous agents grow in number and capability, KITEAI hopes to be the trust layer that keeps everything secure and seamless.
The Series A funding ensures it has the capital to move fast. And with PayPal and General Catalyst backing the vision, the startup is well-positioned to shape the early architecture of the agentic internet.
Final Thoughts On This Project
The combination of blockchain and AI has long been discussed but rarely delivered. KITEAI’s approach to focus on infrastructure rather than end-user apps could give it an edge.
As the agent economy grows, the need for trust, identity, and payments will only increase. KITEAI aims to provide all three in one unified layer. To stay updated on crypto funding news and trends, visit our fundraising area for more insights.
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