How Skyfire’s $8.5M Launch Could Change the Future of Autonomous Transactions

“AI agents can’t do anything if they can’t make payments; it’s just a glorified search,” says Craig DeWitt, co-founder and chief product officer of Skyfire Systems Inc. This captures the essence of the problem Skyfire is aiming to solve. Despite the growing capabilities of AI, from booking flights to sourcing materials, one critical limitation has remained: AI models can’t make purchases on their own. Until now.

AI Agents aren’t going to change the world unless they can make payments @trySkyfire

— amir (@AmirSarhangi) August 21, 2024

Today, Skyfire Systems Inc. launched with $8.5 million in initial funding to bridge this gap, enabling AI to move beyond mere assistance into full autonomy. The startup, co-founded by Amir Sarhangi and Craig DeWitt—both of whom previously held executive roles at Ripple Labs Inc.—has created a platform that gives AI the ability to make transactions independently. Now, they’re leveraging that experience to tackle a problem that’s been a major stumbling block for AI: the inability of models to make autonomous purchases. Even the most advanced AI, like GPT-4o, can’t complete a transaction without a human stepping in. That’s where Skyfire comes in. The investment round attracted more than a dozen institutional backers, including Ripple, a major player in payment processing software. 

Skyfire’s cloud platform is a game-changer for AI developers. It allows them to equip their models with a digital wallet, funded directly from a bank account or through USDC, a stablecoin pegged to the U.S. dollar. This development isn’t just about convenience; it’s about enabling AI to operate in a more autonomous and practical way. With this platform, an AI model can log into third-party services, make purchases, and even handle subscriptions—all without needing human intervention.

One of the more compelling aspects of Skyfire’s platform is the control it offers. Each AI model is assigned its own account, complete with an activity log that tracks transactions. This transparency is crucial for building trust between AI agents and the businesses they serve. It’s not just about cutting out the middleman; it’s about creating a system where AI can be both autonomous and accountable.

But what really makes Skyfire stand out is its potential to reshape how we interact with AI. Picture this: instead of just asking a chatbot to find the best deal on a flight, your AI could actually book it for you, all while sticking to a budget you’ve set. Or imagine a financial analyst using an AI that automatically purchases access to the latest market data. Skyfire’s platform isn’t just adding a feature—it’s opening up new possibilities for what AI can do in our daily lives and in business.

The real-world applications are already being tested. Denso Corp., a global auto parts manufacturer, has been using Skyfire to allow its AI agents to source materials without human interference. Previously, these AI systems would identify the materials needed, but the actual purchase would require a manual payment. Now, with Skyfire, Denso’s AI can complete the entire procurement process autonomously.

Another early adopter, Payman, is utilizing Skyfire’s platform to allow AI to handle payments for contract workers, similar to how services like Fiverr operate, but without human oversight.

For now, Skyfire is focusing on B2B applications, but the vision is much broader. Sarhangi and DeWitt see their platform as the backbone of a new era of commerce, where AI isn’t just an assistant but an active participant in the economy. The open protocol they’re developing could become the standard for AI-driven payments, a tool that any company—competitors included—can use to integrate payments into their AI systems.

As Skyfire rolls out its platform, it’s clear that this is just the beginning. The startup is already planning to expand its capabilities, adding support for more types of transactions and fine-tuning the system based on early feedback. With their newly launched platform, Sarhangi and DeWitt are setting the stage for a future where AI agents can not only assist but act independently in the global economy.