Paradigm expands investment horizons to $1.5B fund focused on AI, robotics, and crypto ventures. Bridging tech sectors for growth.
Paradigm Expands Investment Horizons to Include Artificial Intelligence and Frontier Technologies
Crypto investment firm Paradigm is targeting a substantial $1.5 billion in its latest fund-raising effort. According to sources familiar with the situation, this new vehicle will focus on investments in companies specializing in artificial intelligence (AI), robotics, and other frontier technologies, alongside continued support for crypto ventures.
Strategic Realignment: Bridging Crypto and AI
Paradigm currently manages $12.7 billion in assets under management, as per recent regulatory filings. The firm launched its flagship fund with a $2.5 billion capital infusion in November 2021, making it the largest crypto-focused fund at that time. In 2024, Paradigm publicly announced an additional $850 million venture fund dedicated to early-stage crypto projects. This expansion underscores a strategic shift towards exploring the convergence of AI and cryptocurrency.
Historical Context: Early Exploration in AI
Matt Huang, co-founder and managing partner of Paradigm, acknowledged that his team had been "tinkering" with AI and its integration with blockchain technology as far back as three years ago. In 2023, Paradigm updated its website to remove Web3 and crypto-specific language, leading some to speculate a pivot towards AI. Huang clarified that these changes did not reflect a shift away from crypto but acknowledged the team's growing interest in AI.
Recent Collaboration: EVMbench with OpenAI
In an effort to bridge the gap between blockchain technology and artificial intelligence, Paradigm recently collaborated with OpenAI on developing EVMbench, a new benchmark designed to evaluate how various AI models can identify and mitigate security vulnerabilities in smart contracts. This initiative highlights both firms' commitment to enhancing cryptographic security through AI advancements.
Global Trends in Venture Capital
According to the Organisation for Economic Co-operation and Development (OECD), venture capital investments in AI surged significantly in 2025, amounting to $258.7 billion, which represents a 61% share of all VC funding, doubling its market share from 2022. Generative AI firms alone accounted for 14% of this investment, with U.S.-based companies attracting the majority.
Conclusion: The Future of Investment
The expanding horizons of Paradigm and others in the tech industry signal a broader trend toward integrating artificial intelligence into traditional sectors like cryptocurrency and venture capital. As both fields continue to evolve, it remains to be seen how these investments will shape future technological advancements.
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