PayPal partners with USD.AI to power AI infrastructure payments using PYUSD

PayPal and Permian Labs, the developer and core service provider to the USD.AI Foundation, announced a partnership to support AI infrastructure financing and payments using PayPal USD (PYUSD). The collaboration establishes interoperability between PYUSD and USDai, enabling AI companies to settle infrastructure costs, manage data-center capital expenditures, rental payments, and future agent-driven payment flows with stable, programmable digital dollars.

With Morgan Stanley estimating AI infrastructure spending could reach $6.7 trillion by 2029, demand is growing for fast, transparent, and globally accessible dollar-denominated settlement rails. Designed with commerce and programmability at its core, PYUSD is positioned as a natural settlement layer for USD.AI’s multi-year AI infrastructure financing models. To encourage adoption, PayPal and the USD.AI Foundation plan to launch a customer incentive program offering 4.5% on up to $1 billion in deposits, expected to begin in early January and run for one year.

Under the partnership, USD.AI-issued GPU loans will be available in PYUSD, allowing borrowers to receive funds directly into their PayPal accounts. This streamlines access to liquidity for GPU purchases and operating expenses, while supporting subscription-based, rental, and agent-initiated payments. Backed by USD.AI’s GPU financing protocol, which currently secures more than $650 million in on-chain compute-backed assets, the two companies aim to position PYUSD and USDai as a core settlement layer for AI infrastructure finance, from GPU mortgages to automated agent-driven transactions.