Paradigm launches $1.2B AI fund as crypto’s biggest VC expands beyond digital assets

Paradigm, the crypto venture capital firm co-founded by Coinbase's Fred Ehrsam, closed a $1.2 billion fund dedicated to artificial intelligence and robotics, marking its largest expansion beyond digital assets. The fund has already invested in drone-delivery startup Zipline International and space-defense firm True Anomaly, signaling a strategic bet that AI and robotics are increasingly intertwined with crypto infrastructure.

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/ .