FUNDING | One of Crypto’s Largest Native VCs Raises Over $1 Billion to Expand into AI for the First Time

Leading crypto venture capital firm, Paradigm, has raised a new $1.2 billion fund that will invest in artificial intelligence (AI), robotics, and other frontier technologies alongside digital assets underscoring how AI has become the technology sector’s hottest investment theme.

The San Francisco-based firm said its 4th fund will continue backing crypto infrastructure and financial market innovation while broadening its mandate to include AI reflecting growing overlap between the two sectors through technologies such as autonomous AI agents.

The move mirrors a wider shift across venture capital where several crypto-focused investors have expanded into AI as funding increasingly flows toward artificial intelligence startups. Firms including

• Framework Ventures, and
• Haun Ventures

have recently launched funds that combine crypto and AI investments.

The fundraising comes as global venture investment reaches record levels, driven overwhelmingly by AI.

According to Crunchbase, venture funding totaled $510 billion during the first half of 2026, with AI companies accounting for the largest share. OpenAI and Anthropic alone attracted more than 40% of all funding raised during the period, while crypto startups secured about $10.8 billion.

Paradigm, founded in 2018, has historically been one of crypto’s largest venture investors, backing projects including Hyperliquid and Kalshi. The firm’s latest strategy signals that even dedicated crypto investors are broadening their focus as AI attracts larger capital commitments and increasingly competes with blockchain for investor attention.

Stay tuned to BitKE on crypto venture funding developments. 

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