Paradigm closed a $1.2 billion fund on July 8, 2026, targeting AI and robotics investments, Bloomberg's Rebecca Torrence reported. The fund represents the venture firm's third vehicle and has already backed drone delivery company Zipline and space defense startup True Anomaly. The closure comes as AI startups attract the bulk of global venture capital while crypto deal counts drop sharply, with Paradigm managing roughly $12.7 billion across all funds as it expands beyond its crypto-native origins.
Paradigm Launches $1.2 Billion AI and Robotics Fund
Bloomberg's Rebecca Torrence reported the fund closure on July 8, 2026, describing it as Paradigm's third venture vehicle. Matt Huang and Fred Ehrsam founded Paradigm in 2018. Huang previously worked as a partner at Sequoia Capital, while Ehrsam co-founded Coinbase. The firm built a reputation for technical involvement in crypto investing, often working directly with founders on protocol design.
Paradigm manages roughly $12.7 billion across its funds. Its 2021 vehicle raised $2.5 billion, the largest crypto-focused fund at the time. A 2024 fund brought in $850 million for early-stage blockchain projects. The new $1.2 billion fund targets AI and robotics, marking a significant allocation outside crypto.
Huang Signals AI Focus Since 2023
Huang has discussed AI publicly since at least 2023, when Paradigm softened crypto-specific language on its website. He stated then that the firm remained committed to crypto but found AI developments too interesting to ignore. Paradigm backed Nous Research, a decentralized AI infrastructure company, in a $50 million round in 2024 or 2025.
In February 2026, the firm partnered with OpenAI to launch EVMbench, a benchmark that tests AI agents on finding and patching smart contract vulnerabilities. That timing aligns with an earlier Wall Street Journal report that Paradigm was seeking up to $1.5 billion for a fund built around frontier technology. The $1.2 billion close lands near that target.
Zipline and True Anomaly Receive Early Backing
The Block reported that Paradigm deployed capital from the new vehicle into Zipline through a Series H round in March 2026. The firm also joined a Series D round for True Anomaly in April 2026. Both investments sit outside crypto entirely.
Zipline operates drone delivery services, moving physical goods with autonomous aircraft. True Anomaly builds systems for tracking and defending orbital assets in the space defense sector.
Morpho and M1X Global Rounds Show Continued Crypto Activity
Paradigm has not stepped away from crypto. The firm co-led a $175 million round in Morpho, a decentralized lending protocol, in June 2026. It led a seed round for M1X Global, a company building infrastructure for tokenized US Treasuries, in July 2026. The firm also holds positions in Kalshi and other prediction market and payments companies.
Paradigm is using its existing technical team to evaluate AI and robotics deals rather than building a separate group for the work. That approach keeps the firm's crypto expertise available for adjacent bets, including AI-driven security tools and autonomous payment systems. Paradigm has not issued a detailed public statement with limited partner names or deployment targets.
FAQ
What did Paradigm announce on July 8, 2026?
Paradigm closed a $1.2 billion fund targeting AI and robotics investments on July 8, 2026, according to Bloomberg's Rebecca Torrence. The fund represents the venture firm's third vehicle and has already backed Zipline and True Anomaly.
Why is Paradigm expanding into AI and robotics?
Huang has discussed AI publicly since at least 2023, stating the firm found AI developments too interesting to ignore while remaining committed to crypto. AI startups have pulled in the bulk of global venture dollars over the past year, while crypto deal counts have dropped sharply.
Does Paradigm still invest in crypto projects?
Yes. Paradigm co-led a $175 million round in Morpho in June 2026 and led a seed round for M1X Global in July 2026. The firm also holds positions in Kalshi and other prediction market and payments companies.
