The venture capital market is evolving rapidly, driven by new technological priorities and increasingly marked arbitrage. In this context, Paradigm announces the closing of a new $1.2 billion fund intended to finance projects related to AI and robotics, while continuing certain activities in cryptocurrency. This operation illustrates a redistribution of capital towards emerging technologies, while crypto fundraising is becoming rarer and concentrated on a limited number of large-scale operations.
In brief
- Paradigm has raised $1.2 billion to fund projects related to AI and robotics.
- AI startups now attract the majority of global venture capital investment.
- Paradigm manages approximately $12.7 billion across all of its investment funds.
- The new fund has already financed Zipline and True Anomaly, two companies active outside the crypto sector.
- The company, however, continues to invest in cryptocurrencies, notably with Morpho and M1X Global.
Paradigm strengthens its investment strategy around AI
Founded in 2018 by Matt Huang and Fred Ehrsam, Paradigm has established itself as one of the most specialized venture capital firms in the cryptocurrency ecosystem. Matt Huang previously held an associate role at Sequoia Capital, while Fred Ehrsam co-founded Coinbase. Together, they have developed a technical approach which consists of directly supporting founders in the design of their protocols, beyond simple financing.
According to a Bloomberg reportrelayed by Bitcoin News, this new investment vehicle constitutes the company’s third fund. With this $1.2 billion fundraising, Paradigm wishes to seize opportunities in the AI and robotics sectors, in addition to its historic activity centered on blockchain.
This decision comes in an environment where capital flows now follow two distinct trajectories. Young companies specializing in AI now account for the majority of global venture capital investments. Conversely, funding transactions in cryptocurrencies have declined sharply over the same period, although the largest funding rounds continue to attract investors.
The company currently manages approximately $12.7 billion across various funds. Its fund launched in 2021 had raised $2.5 billion, an amount which then represented a record for a fund dedicated to cryptocurrencies. In 2024, another vehicle also raised $850 million to support blockchain projects in the seed phase.
A strategy around AI prepared for several years
The current positioning does not constitute a sudden change. As early as 2023, Matt Huang publicly spoke about Paradigm’s growing interest in AI. During this period, the company had also relaxed the place given to cryptocurrencies in the presentation of its activity on its website, while reaffirming its commitment to this ecosystem.
Over the years, several investments have confirmed this strategic evolution. Paradigm notably participated in the financing of Nous Research, a company developing a decentralized AI infrastructure, during a $50 million funding round organized in 2024 or 2025.
In February 2026, the company also partnered with OpenAI to launch EVMbench. This tool evaluates the performance of AI agents in finding and fixing vulnerabilities present in smart contracts. This initiative shows that the company is seeking to bring its historical skills in blockchain closer to new uses linked to artificial intelligence.
This development echoed information previously published by the Wall Street Journal. Daily life indicated that the company was seeking up to $1.5 billion to finance a fund dedicated to cutting-edge technologies. The amount ultimately raised, $1.2 billion, is close to this initial objective.
Investments already committed without abandoning crypto
The new fund already finances several companies operating outside of the cryptocurrency sector. Paradigm participated in the financing of Zipline in a Series H round organized in March 2026. This company develops goods delivery solutions using autonomous drones.
A few weeks later, the company also joined a Series D round to benefit True Anomaly. This startup develops systems for tracking and protecting space assets. These two operations illustrate the desire to diversify investments towards industrial and robotic technologies.
However, Paradigm is not abandoning its original sector. In June 2026, theThe company co-led a $175 million funding round for Morphoa decentralized lending protocol. In July 2026, she also led seed funding for M1X Global, a company developing infrastructure dedicated to tokenized US Treasuries.
The company also retains stakes in Kalshi as well as several companies active in prediction markets and payment solutions. Rather than creating a separate team, Paradigm chose to mobilize its current specialists to evaluate projects related to AI and robotics. This organization allows it to maintain its expertise in cryptocurrencies while studying complementary technologies, including security tools based on artificial intelligence and autonomous payment systems.
This fundraising highlights the evolving priorities of technology venture capital. It also shows that large investors specializing in cryptocurrencies are now looking to spread their capital across several innovative sectors, notably those linked to artificial intelligence, while maintaining an active presence in their historical field when opportunities continue to emerge.
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