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.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Kleiner Perkins Raises $3.5 Billion to Invest in AI Market, KP22 Fund Secures $1 Billion
Gate News reported that on March 25, venture capital firm Kleiner Perkins announced it has raised $3.5 billion to support artificial intelligence market investments. The fundraising includes $1 billion raised by its KP22 fund, along with $2.5 billion for investing in growth-stage companies. Kleiner Perkins stated that current market fundamentals are favorable for expanding investment scale, market development is still in its early stage, and artificial intelligence is helping today's startups iterate and develop at an unprecedented pace.
GateNews24m ago
Ant Engineer reverse-engineers Claude code source, revealing the four-layer decision pipeline mechanism of Auto Mode
Ant Group engineer Chen Cheng reverse-engineered Claude Code 2.1.81 source code, revealing its Auto Mode decision-making mechanism. This mechanism employs a four-layer decision pipeline to determine tool invocations, only calling an independent AI classifier for security review when the first three layers cannot make a determination. The classifier design focuses on risk monitoring, featuring a circuit breaker mechanism and behavior prompt injection frequency controls.
GateNews58m ago
Tether Engages Big Four Firm for First Full Audit
Tether engages a Big Four firm for its first full audit, reviewing its $184 billion USDT reserves, aiming to enhance transparency and financial reporting amid internal leadership changes. The audit covers digital and traditional assets, indicating a commitment to stringent scrutiny.
CryptoFrontNews1h ago
Lido Releases 2025 Annual Report: Total Revenue Down 18.2% Year-over-Year, ETH Staking Market Share 24.12%
Lido's 2025 annual report shows that amid APR compression, capital outflows, and intensifying competition, its total revenue declined 18.2% year-over-year. Its ETH staking market share stands at 24.12%. The report also mentioned leadership adjustments and plans to focus in 2026 on scaling the stETH product line, building the validator market, and aligning LDO incentives.
GateNews2h ago
Bitcoin Depot Executive Reorganization, Core Business Revenue Expected to Decline 30% by 2026
Bitcoin Depot announced a leadership transition with former CEO Scott Buchanan and founder Brandon Mintz stepping down, replaced by Alex Holmes. This personnel change is related to regulatory issues the company is facing, with core business revenue expected to decline 30% to 40%. The market reacted clearly to the news with a sharp stock price decline. Analysts believe Holmes's experience may improve the company's situation, but revenue will remain affected in the short term.
GateNews2h ago
Balancer Labs Closes for-Profit Entity, DAO and Team Face Challenges in Next 12 Months
Balancer Labs, the parent company of decentralized exchange Balancer, has announced its closure due to substantial losses from a hacker attack last year. Nevertheless, the Balancer protocol will continue to be operated by Balancer DAO and the foundation, generating revenue. The core team will be integrated into a new entity, BAL token issuance will cease, and all fees will be used to repurchase existing tokens, providing investors with a fair exit opportunity. The DeFi sector is currently undergoing restructuring, and the next 12 months will be a critical test for industry recovery.
GateNews3h ago
