Crypto venture capital giant Paradigm is preparing to raise a new $1.5 billion fund — and this time, it is not just about crypto.
The San Francisco-based firm plans to invest heavily in artificial intelligence, robotics and other frontier technologies. It will still back blockchain startups, but this marks its clearest move yet beyond pure crypto investing.
Paradigm manages around $12.7 billion in assets. It previously launched a $2.5 billion crypto fund in 2021, one of the largest in the industry, and followed it with an $850 million early-stage blockchain fund in 2024. Now, managers believe limiting bets to crypto alone could mean missing major opportunities in AI and automation.
Instead of building a new AI team, Paradigm will rely on its existing technical investment staff to find deals. The firm sees growing overlap between AI systems and blockchain networks, especially in areas like autonomous payments and smart contract security.
Co-founder Matt Huang has pushed back on claims that the firm is abandoning crypto. In 2023, he said Paradigm remained fully committed to digital assets but admitted AI was too important to ignore. He argued the two technologies are not rivals, but increasingly connected.
That link became clearer earlier this month when Paradigm partnered with OpenAI to launch EVMbench. The tool tests whether AI models can detect and fix vulnerabilities in Ethereum smart contracts — a long-standing issue in decentralized finance.
The timing also makes sense. According to OECD data, AI startups attracted $258.7 billion in venture funding in 2025, making up 61% of total VC investment. Generative AI companies alone represented a growing share of that capital.
Other major firms are making similar moves. Andreessen Horowitz recently raised more than $15 billion across multiple funds, strengthening its influence in the US tech sector.
Paradigm’s new fund signals a wider shift in venture capital. Crypto may have built the firm’s reputation, but AI and robotics could shape its next chapter.
