Venture capital firm Paradigm is preparing a new $1.5 billion fund aimed at artificial intelligence, robotics and other emerging technologies, marking its clearest move beyond the crypto sector that built its reputation.
Key points to remember:
- Paradigm is raising a $1.5 billion fund to invest in AI, robotics and other cutting-edge technologies while continuing its support of crypto.
- The company will utilize its existing technical team as it expands beyond blockchain-only investments.
- Paradigm sees growing overlap between AI and crypto, including applications such as autonomous payments and smart contract security.
The San Francisco-based investor will continue to support blockchain startups while expanding into adjacent sectors, according to people familiar with the plan cited by The Wall Street Journal.
Paradigm intends to rely on its existing technical investment team to source deals in cutting-edge technologies rather than building a separate unit.
Paradigm manages $12.7 billion after launching record crypto funds
Regulatory filings show the company manages about $12.7 billion in assets.
It previously launched a $2.5 billion flagship fund in November 2021, at the time the largest dedicated crypto fund, and followed it in 2024 with an $850 million vehicle focused on early-stage blockchain projects.
Managers reportedly concluded that limiting investments to crypto alone risked missing promising opportunities developing in the areas of computing and automation.
The move reflects a broader shift among technology investors, as artificial intelligence reshapes both software and financial infrastructure.
Leaders have long argued that the fields are interconnected. One example is agent-driven payments, in which autonomous software systems execute transactions using blockchain rails.
The concept relies on both AI decision-making and decentralized settlement.
Paradigm’s interest in AI is not new. As early as 2023, observers noticed the company quietly removing Web3-specific language from parts of its website, fueling speculation that it was moving away from digital assets.
Co-founder and managing partner Matt Huang rejected that interpretation but acknowledged the company was exploring the implications of AI.
“We have never been more excited about crypto,” Huang wrote at the time, adding that developments in AI were too important to ignore. He argued that the technologies should not be seen as rivals, predicting overlap between the two ecosystems.
This overlap has already appeared in practice.
Earlier this month, Paradigm partnered with OpenAI to release EVMbench, a benchmark designed to test whether machine learning models can identify and fix smart contract vulnerabilities, a persistent security challenge in decentralized finance.
AI startups raised $258.7 billion in venture funding in 2025, says OECD
The fundraising effort also comes as venture capital is flowing heavily into AI startups.
According to OECD data, AI companies attracted $258.7 billion in venture capital funding in 2025, accounting for 61% of total venture capital investments and nearly doubling their share since 2022.
Generative AI companies alone accounted for 14% of AI-focused funding, with US startups receiving the largest share.
Last month, Andreessen Horowitz secured more than $15 billion in new capital, solidifying its position as one of the most powerful venture capital firms in the U.S. technology sector.
The funds span several strategies, including infrastructure, applications, healthcare, growth investments and its “American Dynamism” initiative.
In 2025 alone, the company accounted for more than 18% of total venture capital deployed in the United States.
Co-founder Ben Horowitz said the fundraising reflects the company’s core philosophy that venture capital exists to give people the opportunity to start businesses and create value.
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