- Paradigm is raising funds to expand its mandate to include AI, robotics, and frontier technologies alongside crypto investments.
- The firm will rely on its existing technical team to assess opportunities across converging sectors.
- Overlap between crypto and AI, such as agentic payments, guides the new strategy direction.
Crypto VC Paradigm is set to expand into AI and robotics. The firm is raising $1.5B fund to adjust its investment scope. The strategy will maintain crypto exposure opportunities in frontier technologies driven by automation and artificial intelligence.
Expansion of Investment Mandate
According to the Wall Street Journal report, Paradigm will raise $1.5 billion to fund AI, robotics, and frontier technology ventures.
Currently, the San Francisco-based firm manages assets worthy $12.7 billion. Its largest vehicle is the $2.5 billion flagship fund, and an additional $850 million early-stage crypto fund.
Managers decided to broaden the mandate to avoid structural limits. They believe frontier technologies increasingly overlap with blockchain infrastructure.
This shift allows participation in sectors with accelerating venture capital activity.
Convergence of Crypto and Artificial Intelligence
Paradigm has pointed to agentic payments as a major area of overlap between crypto and AI. These transactions are executed autonomously by AI agents using blockchain-based settlement.
The firm views this convergence as a practical use case rather than a theoretical concept.
Earlier this month, Paradigm partnered with OpenAI to launch EVMbench.
The benchmark measures how AI models detect vulnerabilities in smart contracts. This project reflects a technical approach to security and automation.
Tweets from Paradigm leadership have reinforced this direction. The posts describe crypto and AI as complementary fields rather than competitors.
The firm stated that innovation in both sectors should progress together through shared infrastructure and research.
Background and Market Context
Paradigm began exploring artificial intelligence Website updates in the 2023 period and removed some crypto-specific language.
Speculation followed about a potential pivot away from blockchain investments. Co-founder and managing partner Matt Huang later clarified the position in public tweets.
He said the firm remained committed to crypto while expanding research into AI. The statements emphasized continued investment across all stages of digital assets.
The broader venture market supports the timing of this move. According to the OECD, AI companies attracted $258.7 billion in venture capital during 2025.
That figure represented more than half of the total VC funding for the year. Generative AI firms accounted for 14% of AI venture capital investment.
United States-based companies received the largest share of this funding.