Paradigm Launches $1.5B Fund to Enter AI and Robotics Space: WSJ Reports
Matt Huang of Paradigm has stated that AI advancements are "too interesting to ignore," noting significant convergence between artificial intelligence and cryptocurrency technologies.
According to a report from the Wall Street Journal, cryptocurrency-focused venture capital firm Paradigm is working to secure $1.5 billion in capital for a newly established fund that will focus on investments across artificial intelligence, robotics, and additional cutting-edge technology sectors.
While Paradigm plans to maintain its investment activities in the cryptocurrency space, sources with knowledge of the matter indicate that the firm intends to leverage its current technical investment team to evaluate and pursue opportunities within frontier technology companies.
Based in San Francisco, Paradigm currently manages $12.7 billion in assets under management, as reflected in its most recent regulatory filings submitted to authorities.
The venture capital firm introduced its flagship fund worth $2.5 billion in November 2021, representing the largest cryptocurrency-focused fund ever raised at that point in time. In 2024, Paradigm made a public announcement regarding its third fund — an $850 million venture capital vehicle dedicated to investing in early-stage cryptocurrency projects and startups.
The WSJ's sources indicate that the decision by the firm's leadership stemmed from a desire to avoid being constrained in manners that might result in missing out on compelling investment opportunities in emerging sectors.
Additionally, there exists significant intersection between cryptocurrency and artificial intelligence technologies, including areas such as agentic payments, which involve transactions conducted by autonomous artificial intelligence agents, according to individuals familiar with the matter.
Paradigm exploring AI as early as 2023
The venture capital firm confirmed that it had begun "tinkering" with artificial intelligence and examining its intersection with cryptocurrency technologies approximately three years ago.
During 2023, observers noticed that Paradigm had begun removing Web3-focused and cryptocurrency-specific terminology from its corporate website, leading certain market observers to theorize that the firm was already making a strategic pivot away from crypto toward AI investments.
At that time, Matt Huang, who serves as co-founder and managing partner of Paradigm, refuted suggestions that the modifications to the website signaled a departure from cryptocurrency investments, though he did confirm that the investment team had been investigating opportunities in artificial intelligence.
In a more detailed tweet posted several weeks afterward, Huang expressed that while "we've never been more excited about crypto and continue to invest across all stages," he acknowledged that the "developments in AI are too interesting to ignore."
"It seems trendy to frame crypto vs AI as a zero-sum competition. But we don't buy it. Both are interesting and will have plenty of overlap. We're excited to continue exploring," he said.
In the early part of this month, Paradigm partnered with OpenAI to launch EVMbench, a newly developed benchmark designed to assess the capability of various AI models to identify and repair security vulnerabilities discovered in smart contracts.
AI made up more than half of all VC funding in 2025
Throughout 2025, venture capital funding directed toward artificial intelligence companies reached a total of $258.7 billion, representing 61% of the entire venture capital investment landscape and effectively doubling its proportion from 2022, based on data from the OECD.
Venture capital investments specifically in generative AI companies accounted for 14% of the total AI venture capital investments, with companies based in the United States securing the largest portion of VC funding overall.