The search engine merges live data with extensive language models such as ChatGPT.
Startup Kaito secured an impressive $5.5 million in Series A funding, valuing the company at $87.5 million. This substantial investment will fuel the development of their specialized artificial intelligence (AI) search engine designed specifically for the crypto industry, as confirmed by the firm to CoinDesk.
With the recent downturn in the crypto market and increasing regulatory scrutiny, AI is emerging as a promising technology. Many crypto firms are recognizing its potential to complement revenue streams and enhance products. Kaito aims to capitalize on this trend by providing an advanced AI-powered solution.
The Kaito search engine has already made its debut in Beta mode, catering to 35,000 eagerly anticipated users starting from June 20. Its unique strength lies in the fusion of large language models (LLMs) with real-time data from various online sources, including social media platforms like Twitter, Discord, and Telegram, as well as industry research, news, proprietary resources such as Kaito’s Twitter Space and podcast transcripts, and even onchain data. According to Yu Hu, the founder and CEO of Kaito, existing language models like ChatGPT do not adequately connect with off-chain crypto-specific information or on-chain data, thus failing to meet the demands of individuals in the crypto space.
LLMs, such as OpenAI’s ChatGPT and Google’s Bard, are neural networks trained on extensive language datasets, enabling them to comprehend and generate human-like texts. Leveraging their linguistic prowess, LLMs can effectively grasp complex concepts and present them in a user-friendly manner.
The recent funding round was led by renowned early-stage crypto venture capital firms, Superscrypt and Spartan. This substantial financial injection follows a previous raise of $5.3 million in February, led by tech VC Dragonfly and featuring investments from Sequoia Capital China and Jane Street.
CoinDesk had the opportunity to experience Kaito’s search capabilities firsthand. When presented with a query regarding the impact of BlackRock’s exchange-traded fund (ETF) launch on Bitcoin, the AI-powered chatbot promptly generated a diverse range of news articles related to the topic. Kaito AI conveyed an ambivalent response, noting that the potential approval of BlackRock’s Bitcoin ETF could have a positive effect on the crypto market by facilitating institutional investment and increasing overall adoption. However, it also acknowledged reports questioning the impact of the Bitcoin halving and emphasized the uncertainty surrounding the ETF’s influence, which will depend on various factors.
Kaito’s impressive funding, coupled with its innovative AI search engine tailored for the crypto industry, positions the startup as a prominent player in the evolving landscape of AI-driven solutions for digital assets.