Crypto VC Paradigm Grows Into AI, Robotics via $1.5B Fund: WSJ

What to Know

$1.5 billion — Paradigm is raising a new fund targeting AI, robotics, and frontier technology investments
$12.7 billion in assets under management makes Paradigm one of the largest crypto-focused venture firms globally
AI venture capital hit $258.7 billion in 2025, accounting for 61% of all VC investment worldwide according to OECD data
Paradigm's co-founder Matt Huang says crypto and AI will have plenty of overlap, pointing to areas like agentic payments

Crypto VC firm Paradigm is seeking to raise $1.5 billion for a new venture fund targeting artificial intelligence, robotics, and frontier technologies, the Wall Street Journal reported on February 28. The San Francisco-based firm manages $12.7 billion in assets according to regulatory filings and will deploy its technical team to evaluate deals beyond crypto while continuing to back digital asset companies.

Paradigm's Frontier Tech Fund Strategy

Paradigm will continue backing cryptocurrency companies despite the new fund's broader scope, sources told the Wall Street Journal. The firm plans to use the same professionals who have assessed crypto deals to scout AI, robotics, and adjacent sectors. Its managers concluded they did not want restrictions that could cause them to miss attractive deals.

The $1.5 billion fundraise would be Paradigm's largest vehicle beyond pure crypto. The firm launched its flagship $2.5 billion fund in November 2021, then the biggest crypto fund ever. It publicly announced its third fund in 2024 — an $850 million venture vehicle focused on early-stage crypto projects.

Why Is Paradigm Expanding Beyond Crypto?

Paradigm sees meaningful overlap between AI and crypto, making expansion a natural evolution rather than a pivot. Co-founder Matt Huang acknowledged as early as 2023 that the firm had been exploring artificial intelligence alongside its crypto thesis. That year, Paradigm removed Web3 and crypto-specific language from its website, fueling speculation about a strategic shift.

Huang denied the website changes reflected a departure from digital assets. Weeks later, he stated that while the team had never been more enthusiastic about crypto, developments in AI were too compelling to ignore. The firm highlighted agentic payments — transactions executed by autonomous AI agents — as a key area where both fields converge.

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.
— Matt Huang, Co-founder and Managing Partner, Paradigm

Paradigm and OpenAI Collaboration

Earlier this month, Paradigm and OpenAI jointly released EVMbench, a benchmark evaluating how well AI models detect and patch security vulnerabilities in smart contracts. The project illustrates the practical intersection of AI and blockchain that Paradigm views as central to its expanded investment thesis.

AI Venture Capital Landscape in 2025

Paradigm's push into AI arrives amid record venture capital deployment in the sector. VC investments in AI firms totaled $258.7 billion in 2025, representing 61% of all venture capital globally and doubling AI's share from 2022, according to OECD data. Generative AI companies attracted 14% of all AI venture capital, with United States-based firms capturing the largest share. Paradigm's new $1.5 billion fund positions the firm to compete in the fastest-growing segment of the venture market.