VCs Back YeagerAI's $7.5M Seed Round for AI-Powered Smart Contracts

YeagerAI, the team behind the decentralized AI network GenLayer, has successfully raised $7.5 million in a seed funding round led by North Island Ventures. The round also saw participation from prominent venture capital firms such as Node Capital, Arrington Capital, ZK Ventures, WAGMI Ventures, BlockBuilders, and Maelstrom, the family office of Arthur Hayes, as well as multiple angel investors.

GenLayer aims to revolutionize blockchain technology by introducing intelligent contracts—smart contracts that leverage large language models (LLMs) connected to the internet. Unlike traditional deterministic smart contracts, which always produce the same outcome given specific inputs, these intelligent contracts can interact with real-time information, enabling applications to adjust dynamically to changing external factors such as financial markets, weather conditions, or news events.

The GenLayer network is built on a bespoke delegated proof-of-stake algorithm, which uses AI to randomly select a lead validator that proposes an output. This output is then voted on by four other validators, each connected to different LLMs. If the majority supports the proposal, the transaction is processed, introducing a new way to reach consensus on subjective decisions.

According to GenLayer co-founder Albert Castellana, this blend of AI and blockchain enables "consensus on subjective decisions," unlocking a range of new applications that were previously impossible to implement. Node Capital partner Amos Meiri emphasized that one of the core limitations of the current blockchain industry is the reliance on human intervention and the lack of access to real-world data. GenLayer’s innovative approach aims to overcome these challenges by integrating AI and blockchain to create more responsive, real-time applications.

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