Crypto funding agency Paradigm is looking for to lift $1.5 billion for a brand new fund that can spend money on firms in AI, robotics and different frontier applied sciences, in line with the Wall Avenue Journal.
Paradigm will proceed to spend money on crypto firms, in line with sources aware of the state of affairs, however it would use its current technical funding workforce to have a look at offers in frontier tech firms, they stated.
San Francisco–primarily based Paradigm has $12.7 billion in property below administration, in line with the most recent regulatory filings.
It launched its flagship $2.5 billion fund in November 2021, which was the most important crypto fund in historical past on the time. It publicly introduced its third fund in 2024 — an $850 million enterprise fund targeted on early-stage crypto initiatives.
In response to the WSJ’s sources, the agency’s managers determined they didn’t wish to be restricted in ways in which might trigger them to overlook out on engaging offers.
There may be additionally overlap between crypto and AI, reminiscent of agentic funds, or transactions made by autonomous AI brokers, the particular person stated.
Paradigm exploring AI as early as 2023
Paradigm acknowledged it had been “tinkering” with AI and its convergence with crypto as early as three years in the past.
In 2023, Paradigm was seen eradicating Web3 and crypto-specific language from its web site, prompting some speculators to recommend it was already pivoting from crypto to AI.
Matt Huang, the co-founder and managing associate of Paradigm, denied on the time that the web site adjustments mirrored a shift away from crypto, however acknowledged that the workforce had been exploring AI.
In a lengthier tweet weeks later, Huang stated that whereas “we’ve by no means been extra enthusiastic about crypto and proceed to speculate throughout all levels,” the “developments in AI are too fascinating to disregard.”
“It appears stylish to border crypto vs AI as a zero-sum competitors. However we don’t purchase it. Each are fascinating and could have loads of overlap. We’re excited to proceed exploring,” he stated.
Earlier this month, Paradigm and OpenAI launched EVMbench, a brand new benchmark evaluating how totally different AI fashions can detect and patch safety vulnerabilities present in good contracts.
AI made up greater than half of all VC funding in 2025
In 2025, enterprise capital investments in AI companies amounted to $258.7 billion, accounting for 61% of all VC funding and doubling its share from 2022, in accordance to OECD.
VC funding for generative AI companies made up 14% of all AI enterprise capital investments, with companies in america attracting the most important share of VC funding.
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