Paradigm Raises $1.2 Billion to Expand Investments in AI and Crypto

Crypto venture firm Paradigm is expanding its investment focus beyond digital assets, with its latest fund targeting artificial intelligence and other emerging frontier technologies.

Paradigm has secured $1.2 billion for its fourth investment fund, broadening the crypto venture capital firm’s focus to include artificial intelligence and other related technologies.

The company said on Wednesday that its newest fund will continue to prioritize crypto investments while also expanding into artificial intelligence, robotics, and other emerging technology sectors.

“We remain committed to investing in crypto and the transformation of markets and the financial system,” Paradigm said, pointing to its investments in the perpetual futures exchange Hyperliquid and the prediction markets platform Kalshi.

Founded in 2018, Paradigm has raised more than $4 billion across three crypto-focused investment funds. Its move into artificial intelligence reflects a broader trend of crypto-native firms expanding into the rapidly growing and increasingly profitable AI sector.

In February, The Wall Street Journal reported that Paradigm was aiming to raise $1.5 billion for a new investment fund focused on artificial intelligence and robotics.

The company’s leadership reportedly chose to expand its investment strategy to avoid being limited to a single sector and potentially missing promising opportunities. It also identified growing overlap between the crypto and AI industries, particularly in areas such as AI agents.

Crypto exchanges such as Crypto.com and Coinbase have made significant investments in AI agents, introducing the technology to their users and upgrading their platforms to better support AI-powered bots.

Crypto Funding Declines as AI Investment Reaches New Highs#

Other crypto-focused venture firms have also expanded beyond digital assets. Last month, Framework Ventures raised $400 million for its fourth fund, which will invest in crypto alongside artificial intelligence, robotics, and energy sectors.

In May, crypto venture firm Haun Ventures raised $1 billion to support crypto startups while expanding its investment strategy to include artificial intelligence for the first time.

Global venture funding reached a record $510 billion during the first half of 2026, setting a new high for six-month investment activity. According to Crunchbase’s July 2 report, the total has already exceeded the $440 billion invested throughout all of last year.

Artificial intelligence companies attracted the largest share of venture funding, with OpenAI and Anthropic together accounting for more than 40% of all investments made during the first half of the year.

Meanwhile, the crypto sector attracted only a small share of overall venture capital, with investments totaling $10.8 billion during the first half of the year, according to CryptoRank.

Paradigm also highlighted several investments outside the crypto sector, including autonomous drone delivery company Zipline, robotic metal fabrication platform SendCutSend, and AI firm Nous Research, the developer of the open-source AI model Hermes Agent.

The firm added that it will continue researching and developing technologies that help accelerate the crypto industry. It also highlighted blockchain tools such as Foundry and Reth, along with AI-focused projects including EVMbench and Centaur.