Crypto VC Paradigm Plans $1.5B Fund Expansion Into AI and Robotics
Venture capital agency Paradigm is making ready a brand new $1.5 billion fund aimed toward synthetic intelligence, robotics and different rising applied sciences, marking its clearest push but past the crypto sector that constructed its fame.
Key Takeaways:
- Paradigm is elevating a $1.5B fund to spend money on AI, robotics and different frontier applied sciences whereas persevering with crypto backing.
- The agency will use its present technical workforce because it expands past blockchain-only investments.
- Paradigm sees rising overlap between AI and crypto, together with functions like autonomous funds and sensible contract safety.
The San Francisco-based investor will proceed backing blockchain startups whereas increasing into adjoining industries, in accordance with individuals conversant in the plan cited by the Wall Street Journal.
Paradigm intends to depend on its present technical funding workforce to supply offers in frontier applied sciences moderately than constructing a separate unit.
Paradigm Manages $12.7B After Launching Record Crypto Funds
Regulatory filings present the agency manages about $12.7 billion in property.
It beforehand launched a $2.5 billion flagship fund in November 2021, on the time the most important devoted crypto fund, and adopted it in 2024 with an $850 million automobile centered on early-stage blockchain initiatives.
Managers reportedly concluded that limiting investments to crypto alone risked lacking promising alternatives growing throughout computing and automation.
The resolution displays a broader shift amongst expertise buyers as synthetic intelligence reshapes each software program and monetary infrastructure.
Executives have lengthy argued that the fields are interconnected. One instance is agent-driven funds, through which autonomous software program techniques execute transactions utilizing blockchain rails.
The idea depends on each AI decision-making and decentralized settlement.
Paradigm’s curiosity in AI isn’t new. As early as 2023, observers observed the agency quietly eliminated Web3-specific language from components of its web site, fueling hypothesis that it was pivoting away from digital property.
Co-founder and managing accomplice Matt Huang rejected that interpretation however acknowledged the agency was finding out AI’s implications.
“We’ve by no means been extra enthusiastic about crypto,” Huang wrote on the time, including that developments in AI had been too essential to disregard. He argued the applied sciences shouldn’t be seen as rivals, predicting overlap between the 2 ecosystems.
That overlap has already appeared in follow.
Earlier this month, Paradigm partnered with OpenAI to launch EVMbench, a benchmark designed to check whether or not machine-learning fashions can determine and patch vulnerabilities in sensible contracts, a persistent safety problem in decentralized finance.
AI Startups Drew $258.7B in VC Funding in 2025, OECD Says
The fundraising effort additionally comes as enterprise capital flows closely into AI startups.
According to OECD data, AI firms attracted $258.7 billion in enterprise funding throughout 2025, accounting for 61% of whole VC funding and roughly doubling their share since 2022.
Generative AI companies alone represented 14% of AI-focused funding, with US startups receiving the most important portion.
Last month, Andreessen Horowitz secured more than $15 billion in contemporary capital, strengthening its standing as some of the highly effective enterprise capital companies within the US tech sector.
The funds span a number of methods, together with infrastructure, functions, healthcare, development investments and its “American Dynamism” initiative.
In 2025 alone, the agency represented over 18% of whole enterprise capital deployed within the United States.
Co-founder Ben Horowitz mentioned the fundraising displays the agency’s core philosophy that enterprise capital exists to present individuals alternatives to construct firms and create worth.
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