Paradigm Raises $1.2B Fund Expanding Into AI and Robotics Beyond Crypto

Paradigm raised a $1.2 billion fund today to invest in AI, robotics, and what it calls the "technical frontier," marking a significant expansion beyond its crypto roots. Founded in 2018 by Matt Huang and Coinbase co-founder Fred Ehrsam, the firm has already deployed capital into drone-delivery company Zipline, valued at $7.6 billion, and space-defense startup True Anomaly, valued at $2.2 billion.

Paradigm insists it is not leaving crypto, pointing to recent investments including a $175 million co-led round for Morpho in June and a seed round for a tokenized-Treasuries startup this month. Managing partner Alana Palmedo told Bloomberg that crypto remains an exciting frontier, but AI startups pulled in roughly 70% of all global venture funding last quarter.