# Paradigm launches $1.2B AI fund as crypto’s biggest VC expands beyond digital assets > Source: > Published: 2026-07-08 16:27:20+00:00 # Paradigm launches $1.2B AI fund as crypto’s biggest VC expands beyond digital assets The firm co-founded by Coinbase's Fred Ehrsam is betting that artificial intelligence and robotics are too intertwined with crypto to ignore. Paradigm, the crypto-native venture capital firm with roughly $12.7 billion in assets under management, just closed a $1.2 billion fund dedicated to artificial intelligence and robotics. ## What Paradigm is actually buying The fund has already deployed capital into two non-crypto companies. Zipline International, an autonomous drone-delivery service, carries a $7.6 billion valuation as of January 2026. True Anomaly, a space-defense startup, was valued at $2.2 billion in April 2026. Managing partner Alana Palmedo framed the expansion as a natural evolution rather than a pivot. The firm sees autonomous agents and AI-powered payment systems as deeply connected to the crypto infrastructure it already funds. ## The fundraising track record The firm, co-founded in 2018 by Coinbase co-founder Fred Ehrsam and former Sequoia partner Matt Huang, closed a record-breaking $2.5 billion crypto-focused fund in late 2021. The firm followed up with an $850 million early-stage crypto vehicle in 2024. By April 2025, Paradigm’s total assets under management sat at approximately $12.7 billion. Paradigm quietly rebranded itself in 2023, shifting its public identity from a “crypto-focused” firm to a “research-driven technology” investor. The move drew mixed reactions at the time. ## What this means for crypto investors Palmedo explicitly stated that the crypto commitment remains intact. The firm still has billions allocated to digital asset ventures. Multiple crypto-native funds have been diversifying into AI over the past 18 months. Paradigm’s $1.2 billion commitment is the largest and most explicit version of this trend. **Disclosure:** This article was edited by Editorial Team. For more information on how we create and review content, see our [Editorial Policy](https://cryptobriefing.com/editorial-policy/).