PayPal partners with USD.AI, using PYUSD as the payment layer for AI infrastructure

PayPal and Permian Labs, the core development and service provider for the USD.AI Foundation, have announced a partnership to support financing and payments for AI infrastructure using the stablecoin PayPal USD (PYUSD). Under the agreement, PYUSD will be integrated and compatible with USDai, enabling AI companies to pay infrastructure costs, manage data center expenses, rental fees, and automate payment flows performed by AI agents using a stable, programmable USD.

In the context of Morgan Stanley estimating AI infrastructure spending could reach $6.7 trillion by 2029, the demand for fast, transparent, and global USD payment channels is rapidly increasing. PYUSD, designed with a focus on commerce and automated payments, is seen as the natural payment layer for USD.AI’s long-term AI infrastructure funding models. To promote the ecosystem, PayPal and USD.AI Foundation will launch a customer incentive program offering an interest rate of 4.5% on deposits up to $1 billion, expected to start in early January and last for one year.

Under the partnership model, GPU loans issued by USD.AI can be disbursed directly in PYUSD into the company’s PayPal account, simplifying GPU purchases, operational cost payments, and supporting subscription-based or AI agent-automated payment methods. Currently, USD.AI’s GPU financing protocol secures over $650 million in tokenized computing assets on the blockchain. Both parties expect PYUSD and USDai to become the core payment layer for AI infrastructure finance, from GPU collateralization to future automated payment flows.