Enterprise capital agency Paradigm is getting ready a brand new $1.5 billion fund aimed toward synthetic intelligence, robotics and different rising applied sciences, marking its clearest push but past the crypto sector that constructed its status.
Key Takeaways:
- Paradigm is elevating a $1.5B fund to spend money on AI, robotics and different frontier applied sciences whereas persevering with crypto backing.
- The agency will use its current technical staff because it expands past blockchain-only investments.
- Paradigm sees rising overlap between AI and crypto, together with purposes like autonomous funds and good contract safety.
The San Francisco-based investor will proceed backing blockchain startups whereas increasing into adjoining industries, in line with individuals conversant in the plan cited by the Wall Road Journal.
Paradigm intends to depend on its current technical funding staff to supply offers in frontier applied sciences quite than constructing a separate unit.
Paradigm Manages $12.7B After Launching Document Crypto Funds
Regulatory filings present the agency manages about $12.7 billion in property.
It beforehand launched a $2.5 billion flagship fund in November 2021, on the time the biggest devoted crypto fund, and adopted it in 2024 with an $850 million automobile targeted on early-stage blockchain tasks.
Managers reportedly concluded that limiting investments to crypto alone risked lacking promising alternatives growing throughout computing and automation.
The choice displays a broader shift amongst expertise traders as synthetic intelligence reshapes each software program and monetary infrastructure.
Executives have lengthy argued that the fields are interconnected. One instance is agent-driven funds, during which autonomous software program programs execute transactions utilizing blockchain rails.
The idea depends on each AI decision-making and decentralized settlement.
Paradigm’s curiosity in AI just isn’t new. As early as 2023, observers seen the agency quietly eliminated Web3-specific language from components of its web site, fueling hypothesis that it was pivoting away from digital property.
Co-founder and managing accomplice Matt Huang rejected that interpretation however acknowledged the agency was learning AI’s implications.
“We’ve by no means been extra enthusiastic about crypto,” Huang wrote on the time, including that developments in AI have been too necessary to disregard. He argued the applied sciences shouldn’t be seen as rivals, predicting overlap between the 2 ecosystems.
We haven't dropped crypto…
The web site now emphasizes the research-driven method we've all the time had, and doesn't mirror a pivot away from crypto. We stay as excited and dedicated to crypto as ever. (Try our current investments, analysis writing, coverage work, and so on).…— Matt Huang (@matthuang) June 6, 2023
That overlap has already appeared in follow.
Earlier this month, Paradigm partnered with OpenAI to launch EVMbench, a benchmark designed to check whether or not machine-learning fashions can establish and patch vulnerabilities in good contracts, a persistent safety problem in decentralized finance.
AI Startups Drew $258.7B in VC Funding in 2025, OECD Says
The fundraising effort additionally comes as enterprise capital flows closely into AI startups.
In response to OECD knowledge, AI firms attracted $258.7 billion in enterprise funding throughout 2025, accounting for 61% of complete VC funding and roughly doubling their share since 2022.
Generative AI corporations alone represented 14% of AI-focused funding, with US startups receiving the biggest portion.
Final month, Andreessen Horowitz secured greater than $15 billion in contemporary capital, strengthening its standing as one of the highly effective enterprise capital corporations within the US tech sector.
The funds span a number of methods, together with infrastructure, purposes, healthcare, progress investments and its “American Dynamism” initiative.
In 2025 alone, the agency represented over 18% of complete enterprise capital deployed in america.
Co-founder Ben Horowitz stated the fundraising displays the agency’s core philosophy that enterprise capital exists to provide individuals alternatives to construct firms and create worth.
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