Crypto Venture Firm Paradigm Raises $1.2B to Expand Into AI

Paradigm has closed a $1.2 billion fourth fund, broadening its focus from crypto into artificial intelligence, robotics and other emerging technologies. The firm said it will keep investing in crypto and financial market innovation while also backing frontier sectors, pointing to existing bets on Hyperliquid and Kalshi as examples of its crypto first roots.

From Crypto-Only to Multi-Sector Bets

Founded in 2018, Paradigm has raised over $4 billion across three earlier funds dedicated to crypto. Its pivot mirrors a broader trend, with firms like Framework Ventures and Haun Ventures also expanding into AI and robotics after raising $400 million and $1 billion, respectively, in recent months. Paradigm said it didn’t want to miss promising deals by staying narrowly focused, especially given growing overlap between crypto and AI, such as autonomous agents.

Crypto Funding Lags Behind AI Boom

Global venture funding hit a record $510 billion in the first half of 2026, with AI firms including OpenAI and Anthropic capturing more than 40% of that total. Crypto specific funding reached just $10.8 billion in the same period. Paradigm’s other holdings include drone delivery startup Zipline and AI firm Nous Research.