As investors look to diversify their portfolios away from crypto and into AI, one investment firm is taking a different approach. Dragonfly Capital is leading Kaito AI’s $5.3 million raise to build an AI-powered search engine for the crypto industry. The product has been in private beta with institutional investors since December and the investment firm is saying it is “revolutionizing” the way they invest.
“With so much information and data available, it can be overwhelming to identify the most valuable insights for informed investment decisions,” said Gengmo Qi, partner at Dragonfly, in a release. “Kaito is solving this challenge by not only aggregating information, but making it readily accessible and actionable.”
Kaito’s cap table for this round features several industry heavyweights including Sequoia Capital, Jane Street, AlphaLab Capital and Mirana Ventures, said the company in the release. This impressive list of investors is likely due to the presence of ChatGPT, the AI chatbot developed by Sam Altman’s OpenAI that Kaito AI is using to bolster its search engine experience.
Since the launch of ChatGPT in late November, an AI chatbot developed by Sam Altman’s OpenAI, a frenzy has formed around ChatGPT as well as AI-linked projects and crypto tokens. Big tech companies are already looking to make a land grab in the space. Microsoft relaunched its Bing search engine with ChatGPT technology, naming it Sydney.
Despite the novelty, there have been some issues; a recent conversation with Sydney unsettled New York Times columnist Kevin Roose. Meanwhile Google unveiled its ChatGPT rival Bard, which made a factual error in its first demo. On the opposite end of the spectrum, more AI startups are emerging including within the crypto space. For example, two-month old ImgnAI, a crypto startup that touts its use of AI, is seeking to raise $7.5 million at a $50 million equity valuation, The Block reported.
At its core, Kaito is an AI startup that is trying to solve the information fragmentation issue in crypto. Data and information is often dispersed across a number of sources such as Discord, Medium, Mirror, podcast transcripts as well as news and research platforms, the company said in the release. Kaito brings this information all in the one place through its AI-powered search engine.
The startup leverages AI not only to aggregate information but also for ranking, recommendations and topic mining, the company said in the release. This is aided by the use of the advanced language models of ChatGPT/GPT-3, which Kaito AI is using to offer a far superior search experience compared to current alternatives in the market.
“Over the past 12 months Kaito has built one of the most extensive information databases in crypto,” said Yu Hu, founder and CEO of Kaito, in the release. “By combining this database and our in-house AI technologies with the advanced language models of ChatGPT/GPT-3, we aim to offer a far superior search experience compared to current alternatives in the market.”
The product will be available on public beta from today, and investors are eagerly anticipating the launch to see if it can live up to the hype. With the AI boom in full swing, Kaito AI is hoping to make an impact in the crypto industry by providing a reliable and comprehensive search engine.
The problem of information fragmentation in the crypto industry is one that has been plaguing investors for some time. Without a reliable source of data and information, it can be difficult to make informed investment decisions. Kaito AI is attempting to solve this problem by aggregating and organizing the data and information from multiple sources into one easily accessible place.
The AI-powered search engine is also leveraging the advanced language models of ChatGPT/GPT-3, which is likely to make the search experience far superior to what is currently available. With the product set to launch on public beta, investors will be able to see firsthand the impact that Kaito AI can have on the crypto industry.
Kaito AI is one of many startups that are looking to capitalize on the AI boom. Big tech companies like Microsoft and Google have already made their presence felt in the space, and more startups are emerging every day. Kaito AI is hoping to stand out from the crowd by providing a reliable and comprehensive search engine for the crypto industry.
The $5.3 million raise that Kaito AI is receiving is a testament to the potential of the product and the AI technology it is leveraging. With the impressive list of investors backing the project, the expectations for the product are high. Whether or not it will be able to live up to the hype remains to be seen, but the launch of the public beta is sure to be an eagerly anticipated event.
