Crypto-focused investor Paradigm is seeking to raise $1.5 billion for a new fund aimed at AI, robotics and other frontier technologies, the Wall Street Journal reported. The effort reflects a strategic expansion rather than an abandonment of crypto, the report said.
Sources familiar with the plan said Paradigm will continue to back crypto companies while deploying its existing technical investment team to evaluate opportunities in non-crypto frontier tech. The San Francisco firm reported $12.7 billion in assets under management in regulatory filings.
Paradigm’s recent history includes a $2.5 billion flagship fund launched in November 2021 and a publicly announced 2024 vehicle — an $850 million fund targeting early-stage crypto projects. According to WSJ sources, partners prefer fewer investment restrictions so they don’t miss attractive deals outside traditional crypto boundaries.
Investors and insiders point to areas where crypto and AI overlap, such as agentic payments — autonomous, AI-driven transactions — as one reason for the broadened focus.
Paradigm has signaled interest in AI since at least 2023. That year the firm removed Web3- and crypto-specific language from its website, sparking speculation about a strategic shift. Co-founder and managing partner Matt Huang pushed back on the idea that the firm was leaving crypto, saying the team had been experimenting with AI. He later tweeted that while Paradigm remains strongly committed to crypto, AI developments are compelling and the two fields are likely to intersect rather than compete.
This month Paradigm and OpenAI published EVMbench, a benchmark that tests how different AI models detect and fix security vulnerabilities in smart contracts — a direct example of the firm’s work at the crypto-AI intersection.
The move comes amid a broader surge in AI investment. OECD data show that in 2025 AI companies drew $258.7 billion in venture capital, accounting for 61% of all VC funding — roughly double AI’s share in 2022. Generative AI represented about 14% of AI VC funding, and U.S. firms captured the largest portion of that capital.
This article was prepared in accordance with the publisher’s editorial standards and aims to provide accurate, timely information. Readers are encouraged to verify details independently and consult the outlet’s editorial policy for more information.