Paradigm aims to raise up to $1.5 billion for the new fund, which will expand its reach to cutting-edge technologies including artificial intelligence and robotics, according to the Wall Street Journal.
The San Francisco-based venture capital firm has built a reputation for supporting digital asset protocols and Web3 infrastructure since its founding by former Sequoia partner Matt Huang and Coinbase co-founder Fred Ehrsam.
Paradigm, which had $12.6 billion in assets under management at the end of 2024, launched a $2.5 billion vehicle in 2021 to back projects like Uniswap and StarkWare, followed by an $850 million early-stage fund in 2024.
The planned fund will be established in 2026 as investment in AI and robotics continues to accelerate, reflecting the growing industrialization of autonomous systems.
This trend is driving companies to pursue physical AI opportunities and increasingly deploying machine learning models directly into hardware-driven enterprise automation workflows.
Paradigm invested $50 million in Nous Research and recently partnered with OpenAI to develop EVMbench, a tool to assess AI performance in blockchain-related tasks.
Other crypto-native investors are similarly moving to diversify into adjacent technology areas, seeking to capitalize on the potential convergence between decentralized networks and machine learning systems.
