Paradigm Raises $1.2B for AI and Robotics as Crypto VCs Shift Away From Digital Assets

According to Bloomberg, Paradigm announced on July 10 a $1.2 billion fund targeting artificial intelligence, robotics, and frontier technologies, signaling a broader shift among crypto investors. The venture firm cited significant developments outside crypto that warrant attention.

Crypto-focused VCs deployed approximately $4 billion across 355 deals in Q1 2026, down roughly 50% quarter-over-quarter, with only 8 new crypto funds closing—the lowest quarterly count since Q3 2020, according to Galaxy Research. Meanwhile, Framework Ventures closed a $400 million fund covering AI, robotics, and energy last month, while Haun Ventures raised $1 billion in May targeting the agent economy.