Paradigm Raises $1.2 Billion for AI and Robotics Fund

Paradigm, a venture firm co-founded by Matt Huang and Fred Ehrsam in 2018, has raised $1.2 billion for its third fund focused on artificial intelligence (AI) and robotics deals.

The new vehicle marks a significant shift in Paradigm's investment strategy, as the firm had previously been primarily focused on crypto-related projects. According to Bloomberg, the firm's existing technical team will be evaluating AI and robotics deals instead of building a separate group for this work.

Paradigm has already backed two companies through its new fund: Zipline, a drone delivery company, and True Anomaly, a space defense startup. The firm co-led a $175 million round in Morpho, a decentralized lending protocol, in June 2026, demonstrating that it has not stepped away from crypto.

The move highlights that even well-capitalized, crypto-native firms see limited room to deploy larger funds inside crypto alone right now. Paradigm's existing fund size is approximately $12.7 billion, with its 2021 vehicle raising $2.5 billion at the time, making it the largest crypto-focused fund.