Paradigm, one of crypto’s largest venture firms, has closed a $1.2 billion fund aimed at artificial intelligence and robotics rather than its usual blockchain bets. The move lands as AI startups capture most global venture dollars and crypto deal counts fall.
Paradigm has closed a $1.2 billion fund built to chase artificial intelligence and robotics deals outside its crypto roots. The vehicle is the firm’s third, and it points capital toward sectors outside its crypto roots.
Matt Huang, formerly a partner at Sequoia Capital, and Fred Ehrsam, a co-founder of Coinbase, founded Paradigm in 2018. Today the firm manages roughly $12.7 billion across its funds.
A shift beyond crypto roots
Paradigm’s earlier funds stayed close to blockchain. Its 2021 vehicle raised $2.5 billion, the largest crypto-focused fund at the time, and a 2024 fund brought in $850 million for early-stage blockchain projects. The new fund breaks that pattern by reaching into AI and robotics instead.
The firm has already put the money to work. Paradigm deployed capital into Zipline, a drone delivery company, through a Series H round in March 2026. It then joined a Series D round for True Anomaly, a space defense startup, in April 2026.
Where the venture dollars are going
The fund reflects a wider rebalancing of startup money. AI companies have pulled in the bulk of global venture dollars over the past year, according to the report. Crypto deal counts, by contrast, have dropped sharply over the same stretch, with money concentrating in fewer, larger rounds.
Even so, Paradigm has not walked away from the sector. The firm co-led a $175 million round in Morpho, a decentralized lending protocol, in June 2026. That deal signals continued crypto conviction even as the firm widens its reach into AI.
Source: Bitcoin.com News
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