Paradigm Seeks $1.5 Billion for New Frontier Technologies Fund, Expanding Beyond Crypto

Crypto investment powerhouse Paradigm is reportedly aiming to raise a substantial $1.5 billion for a new investment fund dedicated to companies operating at the forefront of artificial intelligence (AI), robotics, and other emerging frontier technologies. This strategic move, as detailed by The Wall Street Journal, signifies a significant expansion of Paradigm’s investment mandate beyond its established focus on the cryptocurrency sector.

While Paradigm will continue its existing commitment to investing in cryptocurrency companies, as indicated by sources familiar with the firm’s operations, the new fund will leverage its existing technical investment team to identify and support promising ventures in the frontier technology space. This dual approach allows Paradigm to maintain its roots in crypto while actively exploring and capitalizing on the rapidly evolving landscape of advanced technologies.

Headquartered in San Francisco, Paradigm boasts an impressive $12.7 billion in assets under management, according to its most recent regulatory filings. The firm’s track record includes the launch of its flagship $2.5 billion fund in November 2021, which at the time was recognized as the largest crypto fund ever established. More recently, in 2024, Paradigm publicly announced its third fund, an $850 million venture capital vehicle specifically designed to support early-stage crypto projects.

The decision by Paradigm’s management to pursue investments in frontier technologies stems from a desire to avoid being constrained by existing investment parameters, which could potentially lead to missed opportunities in attractive emerging sectors. This forward-thinking strategy acknowledges the interconnectedness and potential synergies between different technological domains.

A notable area of overlap identified by industry observers and the firm itself is the convergence of cryptocurrency and AI, particularly in the realm of "agentic payments." This concept refers to transactions executed autonomously by AI agents, highlighting the potential for AI to drive new forms of digital commerce and financial infrastructure.

Paradigm’s exploration of AI is not a recent development. The firm has been actively "tinkering" with AI and its integration with crypto for at least three years. Evidence of this interest emerged in 2023 when Paradigm was observed to be removing Web3 and crypto-specific language from its website. This change prompted speculation that the firm might be shifting its focus away from crypto towards AI.

However, Matt Huang, co-founder and managing partner of Paradigm, addressed these speculations at the time, denying that the website modifications signaled a departure from crypto. He clarified that while the team was indeed exploring AI, their commitment to crypto remained unwavering. Huang elaborated in subsequent public statements, emphasizing that while Paradigm’s excitement for crypto and its continued investment across all stages remained as strong as ever, the rapid advancements in AI were simply too compelling to ignore.

Huang articulated a perspective that challenges the notion of a zero-sum competition between crypto and AI. He stated, "It seems trendy to frame crypto vs AI as a zero-sum competition. But we don’t buy it. Both are interesting and will have plenty of overlap. We’re excited to continue exploring." This outlook suggests a belief in the complementary nature of these technologies and the potential for them to mutually benefit and evolve.

Further underscoring Paradigm’s engagement with AI, the firm recently collaborated with OpenAI to release EVMbench. This new benchmark tool is designed to evaluate the capabilities of various AI models in detecting and rectifying security vulnerabilities within smart contracts, a critical area for the blockchain and cryptocurrency ecosystem.

The broader venture capital landscape reflects a significant and accelerating trend of investment in AI. According to data from the OECD, venture capital investments in AI firms reached an impressive $258.7 billion in 2025. This figure represented a substantial 61% of all venture capital investment, more than doubling its share from 2022. Generative AI firms alone accounted for 14% of all AI venture capital investments, with the United States attracting the largest portion of this funding. This burgeoning investment in AI underscores the transformative potential and widespread recognition of its impact across industries.