Paradigm Targets $1.5 Billion Fund to Expand Investments into AI, Robotics, and Frontier Technologies

Paradigm, the San Francisco-based cryptocurrency venture capital firm with $12.7 billion in assets under management, is seeking to raise up to $1.5 billion for a new fund that will expand its investment mandate beyond crypto into artificial intelligence, robotics, and other frontier technologies.

The firm will continue investing in crypto projects while deploying its existing technical team to evaluate opportunities in adjacent sectors, citing increasing convergence between crypto and AI through applications such as agentic payments and smart contract security.

Fund Structure and Investment Strategy

Paradigm’s planned $1.5 billion vehicle represents a strategic expansion of the firm’s investment focus while maintaining its core crypto franchise.

Key elements of the new fund strategy include:

• Investment scope extending to artificial intelligence, robotics, and other frontier technology companies

• Continued commitment to crypto project investments across all stages

• Utilization of Paradigm’s existing technical investment team rather than creating a separate group

• Motivation described as management’s desire not to be “restricted in ways that could cause them to miss out on attractive deals”

The firm’s managers have identified significant overlap between cryptocurrency and AI, including applications such as agentic payments—transactions executed by autonomous AI agents—which represent a convergence point between the two sectors.

Paradigm’s Fund History and Growth Trajectory

The proposed $1.5 billion fund follows a series of increasingly ambitious vehicles in Paradigm’s history.

Previous fund launches:

• November 2021: Launched flagship $2.5 billion fund, at the time the largest crypto fund in history

• 2024: Publicly announced third fund, an $850 million venture fund focused on early-stage crypto projects

• Current AUM: $12.7 billion based on latest regulatory filings

The expansion into frontier technologies represents a natural progression for the firm, which has consistently grown its capital base while maintaining focus on emerging technology sectors.

Historical AI Exploration and Strategic Positioning

Paradigm’s interest in artificial intelligence predates the current fund announcement by several years.

Timeline of AI engagement:

• 2023: Paradigm removed Web3 and crypto-specific language from its website, prompting speculation about strategic pivots

• 2023 response: Co-founder Matt Huang denied the changes reflected a shift away from crypto but acknowledged the team had been “tinkering” with AI and its convergence with crypto

• 2023 clarification: Huang stated that while “we’ve never been more excited about crypto,” the “developments in AI are too interesting to ignore”

• 2026 (February): Paradigm and OpenAI released EVMbench, a benchmark evaluating AI models’ ability to detect and patch security vulnerabilities in smart contracts

Matt Huang articulated the firm’s philosophy regarding the relationship between crypto and AI, rejecting the framing of the two sectors as a zero-sum competition. “Both are interesting and will have plenty of overlap. We’re excited to continue exploring.”

AI Venture Capital Market Context

Paradigm’s expansion into AI investing aligns with broader shifts in the venture capital landscape.

OECD data on AI investment trends:

• 2025 total: Venture capital investments in AI firms reached $258.7 billion

• Market share: AI accounted for 61% of all VC investment, doubling its share from 2022

• Generative AI: Funding for generative AI firms comprised 14% of all AI venture capital investments

• Geographic concentration: US-based firms attracted the largest share of AI venture funding

The substantial growth in AI investment flows reflects the sector’s increasing importance in the technology landscape and provides context for Paradigm’s strategic expansion.

Convergence Opportunities Between Crypto and AI

Paradigm’s expansion strategy recognizes multiple points of intersection between cryptocurrency infrastructure and artificial intelligence applications.

Identified convergence areas include:

• Agentic payments: Autonomous AI agents executing transactions using cryptocurrency rails

• Smart contract security: AI models detecting and patching vulnerabilities in blockchain-based contracts, as demonstrated by the EVMbench release

• Infrastructure overlap: Shared computational and protocol requirements between blockchain networks and AI systems

• Tokenization of AI resources: Potential for cryptocurrency mechanisms to facilitate access to AI compute and models

These convergence points suggest that expertise in both domains may provide competitive advantages as the technologies increasingly interact.

Frequently Asked Questions (FAQ)

Is Paradigm abandoning cryptocurrency investments to focus on AI and robotics?

No. Paradigm will continue investing in crypto companies while expanding into AI, robotics, and frontier technologies. The new fund represents an expansion of investment focus rather than a pivot away from crypto, with the firm recognizing significant overlap between the sectors.

What is EVMbench and why did Paradigm develop it with OpenAI?

EVMbench is a benchmark tool released in February 2026 that evaluates the ability of different AI models to detect and patch security vulnerabilities in Ethereum Virtual Machine (EVM) smart contracts. The collaboration with OpenAI demonstrates Paradigm’s practical approach to exploring the convergence between AI and crypto through direct application of AI technology to blockchain infrastructure challenges.

How does the planned $1.5 billion fund compare to Paradigm’s previous fundraising?

The proposed $1.5 billion fund would be smaller than Paradigm’s flagship $2.5 billion fund launched in November 2021 but larger than its $850 million early-stage fund announced in 2024. The new vehicle reflects the firm’s expanded investment mandate while maintaining significant capital deployment capacity across both crypto and frontier technology sectors.