Paradigm has raised $1.2 billion for its fourth fund, which will help the crypto venture capital firm expand its investment into artificial intelligence and related technologies.
The company said on Wednesday that its latest fund will \"invest first in crypto and will now also explore artificial intelligence, robotics and other cutting-edge areas.\" \"We will continue to invest in cryptocurrencies and innovation in markets and financial systems,\"Paradigm added, highlighting its investments in cryptocurrency perpetual contract exchange Hyperliquid and forecast market platform Kalshi.
Paradigm was founded in 2018 and has so far raised more than US$4 billion for three cryptocurrency-focused funds. Its interest in artificial intelligence follows a trend that companies that originally focused on cryptocurrencies are being attracted to this lucrative and fast-growing industry. 
Strategic expansion and industry trends
In February this year, the Wall Street Journal reported that Paradigm was seeking to raise $1.5 billion for a new fund to invest in artificial intelligence and robotics. The company\'s management allegedly decided to expand its investment because they did not want to be restricted and miss out on attractive deals. In addition, there is also a clear intersection between cryptocurrency and artificial intelligence, such as the application of AI agents.
Cryptocurrency exchanges such as Crypto.com and Coinbase have made major bets in the AI proxy space, providing users with relevant technologies and updating platforms to adapt to these robot programs.
Crypto financing is cooling down, AI financing is heating up
Other crypto venture capital firms have also stepped beyond the boundaries of cryptocurrencies, including Framework Ventures, which last month raised $400 million for its fourth fund to invest in cryptocurrencies as well as artificial intelligence, robotics and energy. In May, crypto venture capital firm Haun Ventures raised $1 billion to support crypto startups and expand its business into artificial intelligence for the first time.
In the first half of 2026, the total global venture capital reached a record high of US$510 billion, and the new high investment volume in this half year exceeded the US$440 billion for the whole of last year. Among them, AI companies accounted for most of the investment, with OpenAI and Anthropic accounting for more than 40% of the total financing in the first half of the year. At the same time, cryptocurrencies only receive a small portion of the venture capital flow-$10.8 billion in crypto financing in the first half of the year.
Paradigm emphasized that some of its non-crypto investments include Zipline, an autonomous drone distribution service, SendCutSend, a robotic metal manufacturing platform, and Nous Research, an AI company that created the open source AI model Hermes Agent. The company added that it will \"continue to research and build areas that can accelerate the development of the crypto industry,\" citing blockchain tools Foundry and Reth, as well as AI projects EVMbench and Centaur.

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