AI Payment Processing Startup Skyfire Launches with $8.5M in Funding
Skyfire Systems Inc., an innovative startup specializing in AI-driven payment processing, has officially launched with $8.5 million in initial funding. The funding round attracted over a dozen institutional investors, including Ripple Labs Inc., a leading payment processing software provider with over $200 million in venture capital backing. Skyfire’s co-founders, Amir Sarhangi and Craig DeWitt, both previously held executive roles at Ripple before founding the new company.
Skyfire’s platform addresses a critical gap in AI functionality—enabling advanced AI models like GPT-4o to make purchases. While current neural networks can perform a wide range of tasks, they lack the ability to complete transactions on behalf of users. Skyfire’s cloud-based platform bridges this gap by allowing AI developers to create digital wallets for large language models. These wallets can be funded via traditional bank accounts or with USDC, a stablecoin pegged to the U.S. dollar. Circle Internet Financial LLC, the developer of USDC, also participated in Skyfire’s funding round.
The platform sets up an account for each AI model that developers register, enabling it to log into third-party services and make purchases. Skyfire’s system includes an activity log that tracks transactions, providing transparency to sellers and allowing developers to demonstrate responsible AI behavior.
Users can set budget limits to prevent overspending, with notifications sent if a transaction exceeds available funds. Skyfire’s CEO, Amir Sarhangi, highlighted the market potential, stating, “Our research indicates the market size of agent-to-agent commerce alone could reach $46 billion over the next three years. We envision a future where millions of AI agents transact globally and autonomously through Skyfire.”
Skyfire’s platform can be used in various scenarios, including allowing AI models to make purchases on behalf of consumers. For example, while chatbots like ChatGPT can help users find products online, they can’t currently place orders. Skyfire enables developers to integrate payment capabilities without needing to build custom systems. Additionally, the platform allows AI models to purchase access to paid data sources or rent cloud infrastructure when needed.
The company has already secured early adopters, including automotive parts supplier Denso Corp. and other businesses. Looking ahead, Skyfire plans to expand its platform by supporting additional types of transactions.