Paradigm Raises $1.5B To Back AI And Frontier Technologies


Paradigm Expands Beyond Crypto

San Francisco-based Paradigm is raising $1.5 billion to invest in artificial intelligence, robotics, and other emerging technologies.

The move represents the firm’s clearest push beyond the crypto sector that built its reputation. Paradigm isn’t giving up on blockchain projects anytime soon. But instead of spinning up a whole new team, it’s putting its current technical investment crew in charge of checking out the latest tech opportunities. 

People close to the company say Paradigm doesn’t want to get stuck just doing crypto—they see real potential in other areas of computing and automation. This move fits right in with what a lot of tech investors are doing now. AI is changing the game in software, finance, and infrastructure, opening up fresh paths for venture capital.

Overlap Between AI And Crypto

Paradigm has been exploring the convergence of AI and crypto since 2023. That year, it quietly removed Web3 and crypto-focused language from parts of its website. Co-founder Matt Huang said this was not a pivot away from digital assets. Instead, it reflected the firm’s desire to study AI developments.

“There is strong overlap between the ecosystems,” Huang explained. “Technologies like autonomous agentic payments rely on AI decision-making and blockchain settlement.”

Paradigm joined forces with OpenAI earlier this month to launch EVMbench, a tool that checks if machine-learning models can spot flaws in smart contracts. It’s another sign that AI and blockchain are crossing paths more and more, especially when it comes to decentralized finance.

Paradigm’s move into AI fits right in with its crypto focus. The company still backs new blockchain startups, but now it’s also pushing into areas like autonomous computing, robotics, and other cutting-edge software—basically anything on the frontier of tech that could use a boost from AI.

Historical Context And Fundraising Strategy

Paradigm started with Matt Huang, who used to be at Sequoia, and Fred Ehrsam, one of Coinbase’s founders. Right now, they manage about $12.7 billion. They’ve raised a lot of money over the years. Their biggest move? A $2.5 billion fund in 2021—the largest crypto fund anyone had ever seen. 

Fast forward to 2024, and they rolled out another big one: an $850 million fund just for early-stage blockchain startups. Now, they’re gearing up for a $1.5 billion fund. This isn’t about leaving crypto behind. Instead, Paradigm wants to branch into frontier tech, but they’re clear—blockchain is still front and center. The new fund just adds to what they already do.

According to regulatory filings, Paradigm isn’t starting from scratch. They’ll use the same technical team that’s brought them this far. Sticking with what works lets them tap into all the knowledge they’ve built up and keeps things steady across their investments.

Frontier Technology And Venture Capital Trends

Venture capital investment in AI has surged in recent years. OECD data indicates that AI companies raised $258.7 billion in 2025, accounting for 61% of total VC funds. Generative AI startups alone represented 14% of this funding.

The industrialisation of AI and robotics is driving interest in autonomous systems. Investors are exploring hardware-driven AI and enterprise automation workflows. Paradigm’s new fund positions it to capitalise on this trend, particularly where AI can integrate with crypto infrastructure.

Other crypto-native investors have also diversified into adjacent technology fields. Paradigm’s strategy reflects a recognition that AI and decentralized networks can create synergies. Applications include autonomous payments, predictive analytics for smart contracts, and security optimisation for blockchain networks.

Strategic Partnerships And Future Plans

AI nodes connected to blockchain blocks over a futuristic cityscape.AI nodes connected to blockchain blocks over a futuristic cityscape.

Paradigm builds global partnerships bridging AI and blockchain. Source: Created by Ventureburn

Paradigm has already made several frontier tech investments. The firm put $50 million into Nous Research and collaborated with OpenAI on EVMbench. These initiatives indicate a continued focus on practical applications where AI enhances blockchain systems.

Co-founder Matt Huang emphasises that the fund is designed to back transformative projects. “We aim to invest where autonomous intelligence meets decentralised infrastructure,” he said. “Our goal is to support technologies that could redefine finance, computing, and enterprise systems.”

The new fund comes as venture capital activity in AI continues to accelerate. Andreessen Horowitz, for example, recently secured over $15 billion in fresh capital for diverse technology initiatives. Investors are increasingly recognising that frontier technologies will shape the next decade of innovation.

Paradigm’s approach signals that crypto and AI can coexist and reinforce each other. Autonomous agentic payments, machine-learning-driven smart contract analysis, and AI-powered digital infrastructure are all emerging as practical areas of overlap.

More News: Rapidus Raises $1.7B To Accelerate 2nm Semiconductor Production

Future Strategy

Paradigm just rolled out a $1.5 billion fund, putting itself right at the crossroads of blockchain and the latest frontier tech. With this move, the firm keeps its edge in crypto but also gets to chase new ideas in AI, robotics, and whatever comes next.

They’re not starting from scratch, either. Paradigm’s technical team—people who’ve spent years deep in blockchain—now bring all that experience to sizing up these next-gen opportunities. The plan is to back early and growth-stage startups, especially where AI and crypto meet.

Really, this is Paradigm reading the room. AI and frontier tech are exploding, and the smartest VCs are spreading their bets, looking for the next big win without giving up what they’re good at. This new fund won’t just shake up crypto or AI alone. 

It’ll help launch projects that blend autonomous intelligence with decentralized networks. In the bigger picture, Paradigm’s move shows how tech investing keeps shifting—and how digital assets and AI are starting to run on parallel tracks that keep getting closer.

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