Paradigm raises $1.5B fund to push beyond crypto into AI and robotics

Paradigm, the venture firm that helped bankroll some of crypto’s most important infrastructure, is placing a very large bet that its next act involves robots and artificial intelligence.

The San Francisco-based firm is raising up to $1.5 billion for a new fund targeting AI, robotics, and other frontier technologies beyond its traditional crypto wheelhouse.

From crypto kingmaker to frontier tech investor

Paradigm was founded in 2018 by Fred Ehrsam and Matt Huang with a singular focus: back the best projects in crypto. The firm became one of the most respected names in the space, writing checks into foundational projects like Uniswap, Coinbase, and Optimism.

By 2021, Paradigm had raised $2.5 billion for its first major fund. In 2024, it followed up with an $850 million vehicle. By 2025, the firm’s assets under management had ballooned to an estimated $12.7 billion.

Back in May 2023, Paradigm quietly adjusted its branding to encompass broader technology research. The new fund makes that shift explicit and public. Paradigm now describes itself as a “frontier technology investment firm.”

Why crypto VCs are chasing AI

Paradigm’s move reflects a trend that’s been building since 2023: the convergence of decentralized infrastructure and artificial intelligence. Paradigm has been experimenting with these intersections internally, and this fund gives the firm dedicated capital to back external teams building at the same crossroads.

What this means for investors

For traditional investors watching from the sidelines, Paradigm’s expansion could serve as a credibility bridge. A firm with $12.7 billion in assets under management rebranding as a frontier technology investor makes it easier for institutional allocators to justify exposure to the same fund.

Paradigm now sits alongside firms like a16z in straddling the crypto-AI divide. The firm has long prided itself on deep technical engagement with portfolio companies, often contributing open-source tooling and research papers alongside capital.

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