Venture capital firm Paradigm is preparing a new $1.5 billion fund aimed at artificial intelligence, robotics and other emerging technologies, marking its clearest push yet beyond the crypto sector that built its reputation.
The San Francisco-based investor will continue backing blockchain startups while expanding into adjacent industries, according to people familiar with the plan cited by the Wall Street Journal.
Paradigm intends to rely on its existing technical investment team to source deals in frontier technologies rather than building a separate unit.
Paradigm Manages $12.7B After Launching Record Crypto Funds
Regulatory filings show the firm manages about $12.7 billion in assets.
It previously launched a $2.5 billion flagship fund in November 2021, at the time the largest dedicated crypto fund, and followed it in 2024 with an $850 million vehicle focused on early-stage blockchain projects.
Managers reportedly concluded that limiting investments to crypto alone risked missing promising opportunities developing across computing and automation.
The decision reflects a broader shift among technology investors as artificial intelligence reshapes both software and financial infrastructure.
Executives have long argued that the fields are interconnected. One example is agent-driven payments, in which autonomous software systems execute transactions using blockchain rails.
The concept relies on both AI decision-making and decentralized settlement.
Paradigm’s interest in AI is not new. As early as 2023, observers noticed the firm quietly removed Web3-specific language from parts of its website, fueling speculation that it was pivoting away from digital assets.
Co-founder and managing partner Matt Huang rejected that interpretation but acknowledged the firm was studying AI’s implications.
“We’ve never been more excited about crypto,” Huang wrote at the time, adding that developments in AI were too important to ignore. He argued the technologies should not be seen as rivals, predicting overlap between the two ecosystems.