PayPal Holdings Inc has taken a significant step into the world of artificial intelligence by spearheading an $18 million Series A funding round for Kite AI, a promising start-up in the agentic web space. This move marks PayPal’s growing interest in cutting-edge AI technologies and their potential applications in the financial sector.
The funding round, led by PayPal Ventures, the company’s investment arm, also saw participation from notable investors including General Catalyst and Samsung Next. This latest injection of capital brings Kite’s total Series A funding to an impressive $33 million.
Kite, previously known as Zettablock, has built its reputation on developing distributed infrastructure systems. The company is now leveraging this expertise to create a revolutionary architecture specifically designed for the agentic web, which involves AI agents interacting autonomously.
Alan Du, a partner at PayPal Ventures, expressed enthusiasm about Kite’s potential, stating, “Kite is the first real infrastructure that is purpose-built for the agentic economy.” Du highlighted Kite’s ability to provide stablecoin-based, rapid settlements with minimal transaction fees and reduced fraud risks as key advantages.
These features could pave the way for innovative economic models, including agent-to-agent metered billing, micro-subscriptions, and high-frequency trading. Such advancements could significantly impact how financial transactions are conducted in the future.
The investment in Kite aligns with PayPal’s strategy to stay at the forefront of financial technology innovation. However, the news did not immediately boost investor confidence, as PayPal’s shares closed 1.3% lower at $69.25 in New York following the announcement.
As the financial world continues to evolve with AI and blockchain technologies, PayPal’s backing of Kite positions the payments giant to potentially shape the future of digital transactions and the agentic web landscape.
