Summary:
- Paradigm is reportedly raising a new $1.5 billion fund to invest in AI, robotics and other frontier technologies, according to The Wall Street Journal.
- The firm will continue backing crypto startups while expanding its scope beyond digital assets.
- Paradigm manages $12.7 billion in assets and previously launched a record $2.5 billion crypto fund in 2021.
- AI attracted $258.7 billion in venture capital in 2025, representing 61% of global VC funding, according to the Organisation for Economic Co-operation and Development.
Venture capital firm Paradigm, long known as one of crypto's most influential backers, is preparing for a broader investment strategy that reaches well beyond blockchain. According to reporting by The Wall Street Journal, the San Francisco-based firm is seeking to raise $1.5 billion for a new fund that will target artificial intelligence, robotics and other emerging technologies. Sources familiar with the matter told the publication that Paradigm will continue investing in crypto startups while using its existing technical investment team to evaluate opportunities in frontier sectors. The shift reflects a growing view inside the firm that rigid sector boundaries could mean missing promising opportunities in rapidly developing fields.
Paradigm currently oversees $12.7 billion in assets under management, based on recent regulatory filings. It made headlines in November 2021 when it launched a $2.5 billion flagship crypto fund, which at the time was the largest in the industry's history. In 2024, it announced an $850 million venture fund focused on early-stage crypto projects, reinforcing its long-term commitment to digital assets. Now, with a potential $1.5 billion vehicle aimed at AI and robotics, Paradigm appears to be positioning itself at the intersection of two transformative sectors.
From Pure Crypto to Frontier Technology
Paradigm's expansion into AI is not as sudden as it may seem. As early as 2023, observers noticed that the firm had removed certain Web3 and crypto-specific language from its website. That sparked speculation that it might be pivoting away from its crypto roots. At the time, co-founder and managing partner Matt Huang addressed those concerns directly. In a public post, he wrote:
Weeks later, Huang expanded on that position, making clear that curiosity about AI did not diminish the firm's conviction in digital assets. He stated:
He also acknowledged that breakthroughs in artificial intelligence were impossible to ignore, describing the developments as compelling enough to warrant serious attention. Those earlier remarks now appear to foreshadow the firm's latest fundraising effort. According to sources cited by The Wall Street Journal, managers at the firm decided they did not want to be restricted in ways that could cause them to miss out on attractive deals. There is also a practical overlap between crypto and AI. One emerging area is agentic payments, where autonomous AI systems execute transactions without direct human intervention. Blockchain networks can serve as transparent settlement layers for such machine-driven economic activity. For a firm deeply embedded in crypto infrastructure, backing AI startups may feel like a natural extension.
Riding the AI Investment Wave
Paradigm's timing aligns with a historic surge in artificial intelligence funding. According to the Organisation for Economic Co-operation and Development, venture capital investments in AI firms reached $258.7 billion in 2025. That figure represented 61% of all global VC investment, more than doubling AI's share compared to 2022. Such numbers illustrate how dramatically the investment landscape has changed. While crypto dominated venture conversations during the 2020 and 2021 bull markets, AI has increasingly captured capital flows and investor attention in recent years. For venture firms, diversification into AI is becoming less a speculative move and more a strategic necessity. Robotics, automation and AI-driven software are reshaping industries from logistics to healthcare. The scale of funding pouring into the sector suggests long-term structural change.
Paradigm's technical expertise may offer it an edge in evaluating complex AI and robotics companies. The firm has built a reputation for deep research and engineering fluency, often publishing technical papers and contributing to open-source projects within crypto. Applying that same analytical rigor to AI startups could allow it to compete with established Silicon Valley venture firms. At the same time, maintaining a strong crypto presence preserves its identity in the ecosystem that defined its rise. Crypto markets continue and new infrastructure layers, scaling solutions and decentralized applications continue to emerge. By investing across both industries, Paradigm may be positioning itself for a future where blockchain networks and intelligent systems operate side by side.
A Broader Vision for the Next Tech Cycle
Paradigm's planned $1.5 billion fund suggests confidence in a broader technological cycle that extends beyond digital assets alone. Blockchain networks increasingly intersect with artificial intelligence, from decentralized compute marketplaces to AI-driven trading and automated financial agents. Robotics, too, could integrate with crypto-based coordination systems or machine-to-machine payments.
For investors, the boundary between crypto and frontier technology is becoming more bigger. Paradigm's strategy reflects that shift by leveraging its existing team and research culture while expanding its mandate, the firm appears intent on participating in the next wave of technological growth without abandoning the foundation that built its reputation. If successful, this expansion could redefine how crypto-native venture firms operate in the years ahead.
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