Crypto's biggest VC just raised $1.2 billion, for AI
Paradigm, one of crypto's most influential venture firms, has closed a $1.2 billion fund targeting AI and robotics. The move signals a strategic broadening beyond digital assets, with early bets already placed on drone delivery and space defense.
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From Crypto Pioneer to AI Investor
@paradigm, one of the most influential venture capital firms in crypto, has closed a $1.2 billion fund with a clear new focus: artificial intelligence and robotics, not tokens. The fund marks a significant expansion beyond the crypto sector that built Paradigm's reputation. It is the firm's third venture vehicle to date.
Founded in 2018 by Matt Huang and Coinbase co-founder Fred Ehrsam, Paradigm built its name as one of crypto's largest venture investors. The firm launched a $2.5 billion flagship crypto fund in November 2021, then the largest dedicated crypto fund, before raising an $850 million fund for early-stage blockchain startups in 2024. The new $1.2 billion vehicle represents a meaningful step-down in crypto-specific capital, with the fresh money pointing firmly toward AI.
Early Bets: Drones and Space Defense
Paradigm has already deployed capital from the new fund into several companies, including autonomous drone delivery firm Zipline International, valued at $7.6 billion in January, and space defense startup True Anomaly, which reached a $2.2 billion valuation in April. Neither sits anywhere near the blockchain world.
Management has been careful to frame the shift as expansion, not departure. Managing partner Alana Palmedo told Bloomberg: "Crypto was the first frontier for us, and it continues to be a really exciting one, but there's so much else happening right now that's pretty hard to ignore." The firm says it will continue investing in crypto as well.
The decision to expand into AI follows an explosion of funding activity for artificial intelligence startups and a relative slump in crypto-related investments. The trajectory of Paradigm's own funds tells the story concisely: $2.5 billion for crypto in 2021, $850 million for crypto in 2024, and now $1.2 billion for AI and robotics in 2026. The direction of travel is hard to miss.
Bloomberg: Paradigm Raises $1.2 Billion for AI Bets | CoinDesk: Paradigm Launches $1.2 Billion AI Fund
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Crypto RichRich has been researching cryptocurrency and blockchain technology for eight years and has served as a senior analyst at BSCN since its founding in 2020. He focuses on fundamental analysis of early-stage crypto projects and tokens and has published in-depth research reports on over 200 emerging protocols. Rich also writes about broader technology and scientific trends and maintains active involvement in the crypto community through X/Twitter Spaces, and leading industry events.