CoinDesk
Paradigm has raised a $1.2 billion venture fund focused on artificial intelligence and robotics, according to a Wednesday report from Bloomberg. The vehicle, the firm's third, expands its mandate beyond digital assets while keeping crypto as an active investment area.
The fund has already deployed capital into autonomous drone delivery company Zipline International, valued at $7.6 billion in January, and space defense startup True Anomaly, which reached a $2.2 billion valuation in April. Managing partner Alana Palmedo told Bloomberg that crypto remains exciting but is no longer the only frontier worth backing.
Why it matters
Founded in 2018 by Matt Huang and Coinbase co-founder Fred Ehrsam, Paradigm built its reputation as crypto's most aggressive institutional check-writer, anchored by a $2.5 billion flagship crypto fund in 2021, the largest dedicated crypto fund at the time, and an $850 million early-stage blockchain fund in 2024. A $1.2 billion allocation to AI and defense, anchored at that scale, signals where the firm's conviction and dry powder are now flowing.
The move lands as a growing share of crypto-native capital migrates into AI infrastructure, compute, and dual-use technology. Huang said as early as June 2023 that advances in AI were "too interesting to ignore" and explicitly rejected a zero-sum framing between crypto and AI investing.
Market impact
The size of the allocation matters: $1.2 billion into AI and robotics is comparable in scale to Paradigm's prior crypto vehicles, suggesting the firm is matching, not replacing, its digital-assets commitment. Crypto is now a vertical within a broader frontier-tech thesis, not the only game in town.
Watch the overlap thesis in practice. Palmedo's framing leaves room for bets at the crypto-AI intersection, including decentralized compute, AI-agent payment rails, and tokenized real-world assets. The first joint investments under the new mandate will set the template the rest of the industry reads.
Frequently asked questions
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How large is Paradigm's new AI fund compared with its prior crypto funds?
The new vehicle is sized at $1.2 billion, comparable in scale to Paradigm's $2.5 billion crypto flagship raised in 2021 and the $850 million early-stage blockchain fund raised in 2024.
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Has Paradigm abandoned crypto investing?
No. Managing partner Alana Palmedo told Bloomberg that crypto remains an active and exciting frontier for the firm, even as the new fund targets AI and robotics.
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Which companies has the new Paradigm fund already backed?
Per Bloomberg, deployments include autonomous drone delivery company Zipline International, valued at $7.6 billion in January, and space defense startup True Anomaly, valued at $2.2 billion in April.
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What is the overlap thesis between crypto and AI that Paradigm is signaling?
Co-founder Matt Huang said in June 2023 that the firm did not view crypto and AI as a zero-sum competition and expected meaningful overlap, including decentralized compute, AI-agent payment infrastructure, and tokenized real-world assets.
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Who founded Paradigm and when?
Paradigm was founded in 2018 by Matt Huang and Coinbase co-founder Fred Ehrsam, and built its reputation as one of crypto's largest institutional venture investors.
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