Paradigm Seeks $1.5B Fund for AI, Robotics, Frontier Tech
By Staff Editor — Reviewed by Staff Editor
Paradigm is seeking to raise $1.5 billion for a new fund to invest in artificial intelligence, robotics and other frontier technologies, the Wall Street Journal reported. The firm will continue backing crypto-focused companies, while leveraging its existing technical investment team to evaluate opportunities in frontier tech, according to people familiar with the matter.
Based in San Francisco, Paradigm reported $12.7 billion in assets under management in its most recent regulatory filings. The firm launched a $2.5 billion flagship fund in November 2021, which was then the largest crypto-focused vehicle on record. In 2024, it announced its third fund — an $850 million venture fund targeting early-stage crypto projects.
Managers opted not to impose constraints that could cause the firm to miss attractive investments, the WSJ’s sources said. They also noted areas of convergence between crypto and AI, including agentic payments, or transactions executed by autonomous AI agents.
Paradigm’s AI work dates back to 2023
Paradigm has acknowledged experimenting with AI and its intersection with crypto as early as three years ago. In 2023, observers noted the firm had removed Web3- and crypto-specific language from its website, prompting speculation about a shift toward AI.
Co-founder and Managing Partner Matt Huang said at the time that the website updates did not indicate a move away from crypto, while confirming the team was actively exploring AI. He later added that the firm remained highly engaged in crypto, but viewed developments in AI as too significant to overlook, and expected meaningful overlap between the two fields.
Earlier this month, Paradigm and OpenAI introduced EVMbench, a benchmark designed to evaluate how different AI models identify and remediate security vulnerabilities in smart contracts.
AI accounted for more than half of VC funding in 2025
In 2025, venture capital investment in AI companies reached $258.7 billion, representing 61% of all VC funding and doubling its share from 2022, according to the OECD. Generative AI firms comprised 14% of AI-related VC investment, with companies in the United States receiving the largest share of capital.
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