Crypto VC Paradigm launches $1.2 billion AI fund as it broadens beyond digital assets: BBG

Markets Crypto VC Paradigm launches $1.2 billion AI fund as it broadens beyond digital assets: BBG The firm's latest fund backs AI and robotics startups but leadership says it remains committed to crypto investing. By Helene Braun | Edited by Cheyenne Ligon Jul 8, 2026, 3:11 p.m. 2 min read Make preferred on Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Make preferred on Summary Show Paradigm has raised a $1.2 billion venture fund focused on artificial intelligence and robotics while continuing to invest in crypto. The fund has already backed drone delivery company Zipline and space defense startup True Anomaly, according to Bloomberg. The new vehicle expands Paradigm's investment strategy beyond digital assets after previously raising dedicated crypto funds in 2021 and 2024. Paradigm has raised $1.2 billion for a new venture fund focused on artificial intelligence and robotics, according to a Wednesday report from Bloomberg. The firm's third venture fund reflects growing interest in AI and defense technology, though it does not signal an exit from digital assets. "Crypto was the first frontier for us, and it continues to be a really exciting one, but there's so much else happening right now that's pretty hard to ignore," managing partner Alana Palmedo told Bloomberg. Paradigm has already deployed capital from the new fund into several companies, Bloomberg reported. Those include autonomous drone delivery company Zipline International, which was valued at $7.6 billion in January, and space defense startup True Anomaly, which reached a $2.2 billion valuation in April. Founded in 2018 by Matt Huang and Coinbase co-founder Fred Ehrsam, Paradigm built its reputation as one of crypto's largest venture investors. The firm launched a $2.5 billion flagship crypto fund in November 2021, then the largest dedicated crypto fund, before raising an $850 million fund for early-stage blockchain startups in 2024. Paradigm's interest in AI predates its latest fund. In a June 2023 post on X , co-founder Matt Huang said the firm had "never been more dedicated to crypto" while also acknowledging that advances in artificial intelligence were "too interesting to ignore." Huang rejected the idea that crypto and AI compete with each other, writing that the firm did not view them as "a zero-sum competition" and expected "plenty of overlap" between the two technologies. At the time, Huang said Paradigm would continue investing across all stages of the crypto market while exploring AI as part of its broader research-driven investment strategy. Latest Crypto News 1 Dinari, tZERO join forces on turnkey platform for tokenized U.S. equities 37 minutes ago 2 Adam Back's BSTR scraps SPAC merger, seeks new deal 55 minutes ago 3 BNB Chain is building a new layer-1 for high-frequency trading and AI agents 1 hour ago 4 Citadel abandons multi-year crypto lawsuit to focus on bankruptcy order against an ex-employee 2 hours ago 5 SpaceX's first bitcoin wallet movements in six months likely don't signal sales 2 hours ago 6 Bitcoin's inflation quagmire gets stickier as renewed MidEast conflict sends oil price soaring 3 hours ago 7 Crypto and stocks tumble after Trump declares ceasefire 'over' following Iran strikes 4 hours ago 8 Reserve Bank of India still favors crypto prohibition to curtail tax evasion: Reuters 5 hours ago 9 Validators embrace XRP Ledger's recent upgrade. But not everyone’s on board yet 6 hours ago 10 Live markets: Bitcoin drops to $62,000, stocks slide, oil soars as Iran ceasefire collapses 9 hours ago Latest Research SpaceX IPO Drives Tokenized Equity Volumes to Record as Stablecoin Market Cap Falls SpaceX IPO Drives Tokenized Equity Volumes to Record as Stablecoin Market Cap Falls Stablecoin market cap fell to $312B in June, its largest monthly drop since TerraUSD, while tokenized equity volumes surged 145% to a record $3.86B. By CoinDesk Research Jul 7, 2026 Stablecoin market cap fell to $312B in June, its largest monthly drop since TerraUSD, while tokenized equity volumes surged 145% to a record $3.86B. Why it matters : Stablecoin market cap fell to $312B in June, its largest monthly drop since TerraUSD, while tokenized equity volumes surged 145% to a record $3.86B. View Full Report More From Markets Adam Back's BSTR scraps SPAC merger, seeks new deal SpaceX's first bitcoin wallet movements in six months likely don't signal sales Crypto and stocks tumble after Trump declares ceasefire 'over' following Iran strikes