Crypto venture capital firm Paradigm is seeking to raise $1.5 billion to establish a new fund, investing in artificial intelligence, robotics, and other cutting-edge technology companies, while continuing to maintain its existing investments in cryptocurrency projects. Fund managers have stated they do not want restrictions to avoid missing attractive deal opportunities.
New Fund Strategy: Frontline Tech Beyond Crypto Borders
According to insiders, Paradigm will leverage its existing tech investment team to systematically seek investment opportunities in AI, robotics, and frontier technology companies, rather than starting from scratch. The core idea from management is that there are many overlapping use cases between cryptocurrencies and AI, such as autonomous payments initiated by AI agents and on-chain transactions executed by autonomous AI agents.
Historically, Paradigm’s expansion has been quite clear: in November 2021, it launched a $2.5 billion flagship fund, the largest crypto fund ever; in 2024, it launched its third fund with $850 million, focusing on early-stage crypto projects. The new $1.5 billion fund further extends Paradigm’s investment footprint. According to recent regulatory filings, the company currently manages assets worth $12.7 billion.
AI Exploration Journey: From Website Language Removal to Partnering with OpenAI
Paradigm’s move into AI was not sudden; it was foreshadowed as early as 2023. That year, the company removed Web3 and crypto-related language from its website, sparking speculation about a strategic shift. Co-founder and managing partner Matt Huang denied this meant abandoning crypto but later admitted, “AI development is too interesting to ignore,” and explicitly stated, “Both crypto and AI are fascinating, and there will be many overlaps.”
This month, Paradigm partnered with OpenAI to release EVMbench, a benchmarking tool that evaluates different AI models’ ability to detect and fix security vulnerabilities in smart contracts. This is a concrete application of its “AI and crypto integration” strategic approach.
Paradigm Fund Development Timeline and Key AI Expansion Milestones
November 2021: Launched $2.5 billion flagship fund, the largest crypto fund ever
2023: Removed Web3 language from website; Huang confirmed exploring AI and crypto integration
2024: Announced third fund with $850 million, focusing on early crypto projects
2026 (this month): Released EVMbench with OpenAI; seeking to raise $1.5 billion for AI and robotics investments
Industry context: According to OECD data, AI venture capital reached $258.7 billion in 2025, accounting for 61% of global VC funding (doubling since 2022)
Frequently Asked Questions
Does this fundraising mean Paradigm is abandoning crypto investments?
No. According to insiders, Paradigm will continue investing in crypto companies. The new fund is a strategic extension based on crypto investments, not a replacement. Management explicitly states they do not want restrictions on their investment scope, aiming to capture emerging opportunities at the intersection of crypto and AI (such as AI agent payments, smart contract security, etc.).
What is EVMbench, jointly released by Paradigm and OpenAI?
EVMbench is a benchmarking tool used to evaluate different AI models’ ability to detect and repair security vulnerabilities in Ethereum Virtual Machine (EVM) smart contracts. It represents Paradigm’s direct application of AI technology to crypto security infrastructure and exemplifies its strategy of deep integration between AI and crypto.
How does the rapid growth of the AI venture market impact crypto VC?
OECD data shows that in 2025, AI startups attracted $258.7 billion in VC funding, accounting for 61% of global VC, double that of 2022. Paradigm’s strategic adjustment reflects this capital flow—top-tier VC firms are now allocating assets across disciplines, with intersections like AI agent payments and tokenization infrastructure becoming new investment focal points.
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