Paradigm Raises $1.2 Billion Fund to Expand Into AI

Paradigm, a crypto-focused venture capital firm, has raised a new $1.2 billion fund to expand its investments in artificial intelligence.

Bloomberg reported on July 8 that the firm had completed fundraising for its third fund. Paradigm plans to use the new vehicle to expand investments in AI and robotics.

Founded in 2018, Paradigm manages $11.9 billion in assets. It was an early investor in Kalshi, a global prediction-market platform. Bloomberg said the firm's move into AI comes as investment in AI startups surges while crypto-related funding remains subdued.

The firm will continue investing in crypto as well. "Crypto is still a very exciting area," Paradigm Managing Partner Alana Palmedo said. "There is just so much happening in other areas right now that is hard to ignore."

Paradigm is also developing its own prediction-market platform. It has not disclosed a launch timeline. The firm plans to eventually spin off its prediction-markets division into a separate company.