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In this exclusive interview with The Founder, we sit down with Scott Stuart, Co-Founder of Kava, to discuss the groundbreaking advancements in decentralized AI and its impact on the DeFi space. With Kava AI's latest integration of DeepSeek R1, the company is poised to revolutionize how users interact with blockchain applications. Scott shares insights into the motivation behind Kava AI, the challenges of bridging AI and crypto, and what this means for the future of decentralized finance.
Q. Scott, can you tell us a little about your background and what led you to co-found Kava?
I have a pretty unconventional path that led me to co-founding Kava. I studied Mathematics and Economics at the University of Wisconsin-Madison, but instead of taking a traditional career route, I spent over seven years as a professional poker player. That experience sharpened my analytical skills and gave me a deep understanding of game theory and logic—both of which have been incredibly valuable in the world of crypto.
After poker, I founded AppEase, a mobile advertising technology company, which gave me firsthand experience in building and scaling a tech business. Around 2016-2017, I started diving deep into Ethereum and blockchain technology, and I saw a massive opportunity to create decentralized financial services that could reach a global audience. That vision led me and my co-founders to start Kava Labs in 2017. I initially served as Head of Product, and in 2021, I stepped into the role of CEO. After that, we focused on building Kava into a high-performance Layer-1 blockchain that bridges the best of Cosmos and Ethereum for developers and users worldwide.
Q. What excites you the most about the intersection of AI and blockchain technology?
What really excites me is how AI and blockchain together can push the boundaries of decentralization and innovation. Our goal is to create an open, community-driven AI marketplace where anyone can access, build, and deploy AI-powered services without relying on centralized gatekeepers. The combination of AI and blockchain has the potential to change the way we interact with technology—offering more transparency, better incentives for developers, and a real alternative to the closed, corporate-controlled AI systems we see today.
Q. Kava AI is being called a game-changer for DeFi. Can you break down in simple terms how it works?
DeFi has always promised an open, user-controlled financial system, but in reality, it’s been anything but simple. The complexity of staking, yield farming, and cross-chain transactions has kept mainstream users out. Kava AI is designed to address this.
At its core, Kava AI is the first decentralized AI that doesn’t just provide insights—it can actually execute transactions on-chain. Users can ask natural-language questions like, “Can you help me to move my tokens across these chains?” or “Find me the safest bridge for my assets,” and Kava AI not only searches for the best course of action but also automates the entire process in real time.
Finally,AI is being applied in a way that makes DeFi practically usable for everyday people. No more endless research, manual transactions, or getting lost in the technical weeds. Kava AI is bridging the gap between AI and finance, making DeFi as intuitive as sending a text—without sacrificing decentralization.
Q. Many AI-driven crypto tools rely on centralized models. How does Kava AI ensure true decentralization?
First, Kava AI is built on open-source intelligence, meaning its models aren’t locked behind a corporate paywall or controlled by a single entity. The AI itself is verifiable, auditable, and continually improved by the community, not just a handful of developers behind closed doors.
Second, it runs on decentralized infrastructure, rather than the cloud servers of Big Tech. AI models are powered by a distributed network of high-performance computing (HPC) resources, removing dependency on centralized providers.
Finally, governance is fully on-chain. Instead of an AI model that evolves based on the priorities of a corporation, Kava AI is shaped by its users, who help refine its capabilities, fine-tune its responses, and determine its future direction. That means the intelligence driving Kava AI isn’t dictated by a single company—it’s owned and governed by the community.
True decentralized AI means users direct not just how AI interacts with their assets, but also how the intelligence itself is developed, updated, and applied.
Q. What inspired the integration of DeepSeek R1 into Kava AI, and what sets it apart from other AI-powered blockchain solutions?
We wanted to build an AI that wasn’t just bolted onto blockchain as an afterthought—but one that was truly designed for decentralized finance, smart contract execution, and Web3 automation from the ground up. DeepSeek R1 stood out because it’s one of the most powerful open-source AI models available today, capable of advanced reasoning, code generation, and contextual decision-making—all critical for making DeFi more intuitive and accessible.
What sets Kava AI apart isn’t just that it uses DeepSeek R1—it’s how it’s integrated. Most AI-powered blockchain tools rely on centralized APIs, meaning they’re still fundamentally controlled by private entities. Kava AI flips that model by running on a fully decentralized architecture, where the intelligence layer, infrastructure, and governance are all distributed across the Kava network.
With DeepSeek R1, Kava AI can actually execute on-chain transactions in real time, rather than just analyzing data or offering suggestions. Users can ask simple, plain-language questions like, “Where’s the best staking opportunity right now?” and Kava AI not only finds the answer—it can move the assets and explain the reasoning behind it.
Q. User experience has always been a challenge in DeFi. How does Kava AI make complex blockchain transactions more intuitive for everyday users?
DeFi has always been powerful, but if we’re being honest—it’s not the most user-friendly. Even crypto natives can still struggle with navigating liquidity pools, bridging assets across chains, or optimizing staking rewards. Kava AI fixes this by eliminating complexity and turning DeFi into a conversation rather than a technical obstacle course. It analyzes live market conditions, recommends the best strategy, and executes the transactions in real time—all while explaining why that decision makes sense.
This is only possible because Kava AI is fully integrated into the blockchain itself, not just sitting on top of it like a chatbot. It is directly connected to DeFi protocols, smart contracts, and on-chain data, which means it can actually move assets and automate multi-step transactions—without requiring users to manually execute each task.
Q. Security is a major concern when it comes to AI and blockchain. What measures has Kava taken to ensure transparency and user trust?
One of the biggest risks in AI today is data control—who owns it, where it’s processed, and how it’s used. Many AI models, including DeepSeek, operate on China-based infrastructure, raising concerns about data privacy, surveillance, and regulatory uncertainty. As the U.S. government moves to restrict China-linked AI providers over national security risks, Kava offers a crucial alternative.
Kava AI runs entirely on U.S.-based infrastructure, ensuring that user data never passes through China-controlled servers or opaque corporate black boxes. This means no risk of unauthorized data collection, no reliance on foreign governments, and full compliance with Western privacy and security standards.
Beyond infrastructure, every AI-powered transaction on Kava AI happens on-chain, ensuring full transparency and verifiability. Users can audit every decision, track how strategies are executed, and verify that AI recommendations are aligned with their best interests—not manipulated by hidden incentives. With open-source governance and decentralized oversight, Kava AI ensures that AI in DeFi is accountable, secure, and truly in users’ hands.
Q. Regulatory scrutiny around AI and crypto is increasing. How does Kava navigate these challenges, especially with U.S.-based infrastructure?
Regulation is one of the biggest uncertainties in both AI and crypto, and we’re tackling it head-on. By building Kava AI on U.S.-based infrastructure, we ensure compliance with Western security and privacy standards while avoiding the risks associated with AI models running on China-linked servers. As scrutiny grows over foreign AI providers, our approach keeps Kava adaptable for evolving regulations.
On the crypto side, Kava has always prioritized regulatory resilience. Our blockchain is fully decentralized, meaning no single entity controls the network or its AI operations. We’re also committed to open-source governance, allowing transparency into how AI models evolve and ensuring compliance is driven by community oversight rather than corporate mandates.
By decentralizing AI infrastructure and aligning with U.S. security frameworks, we’re building a model that can meet future standards without sacrificing innovation.
Q. Looking ahead, what’s next for Kava AI? Any upcoming innovations or expansions we should keep an eye on?
Kava AI is accelerating its vision for decentralized intelligence with major developments on the horizon. The launch of Oros, Kava’s AI-powered execution layer, is expanding blockchain automation through natural language commands, making DeFi interactions seamless. The AI Launchpad is also rolling out, allowing users to engage with DeFi applications through an intuitive chatbot interface.
Looking ahead, Kava is focused on cross-chain AI execution, integrating with multiple EVM-compatible chains to bring decentralized AI-powered automation beyond the Kava ecosystem. Additionally, with the introduction of OpenDiLoCo, Kava is pioneering a fully decentralized AI training model, ensuring that intelligence remains open, transparent, and censorship-resistant.
With a major pivot solidifying its AI-first strategy, Kava is shaping the future of DeAI, pushing boundaries in decentralized finance and AI governance. For the latest updates, check out Kava’s roadmap.
Q. Finally, what is your vision for the future of decentralized AI in the blockchain space?
The future of decentralized AI isn’t just about building alternatives to centralized models—it’s about creating a fundamentally different paradigm for intelligence itself. Right now, AI is controlled by a handful of corporations, with closed training data, opaque decision-making, and limited user control. Blockchain provides a path to change that.
I see a future where AI is open-source, decentralized, and owned by its users, not corporate entities. Models will be trained collaboratively, governed transparently, and executed in ways that empower individuals instead of extracting value from them. Blockchain is the missing piece that makes this possible, providing a verifiable, trustless system where AI can operate free from centralized oversight.
We’re still in the early days, but the movement toward community-driven intelligence is already underway, and I believe it will define the next era of both AI and blockchain.
Scott Stuart and the Kava team are pioneering a new era of AI-driven DeFi that prioritizes decentralization, user experience, and security. Working with the world’s largest decentralized AI model, Kava AI is redefining how people engage with blockchain technology, making it more accessible and intuitive for everyone. With a promising roadmap ahead, Kava continues to push the boundaries of what's possible in the Web3 ecosystem. Stay tuned for more insights and innovations from The Founder.
