When ChatGPT launched in November of 2022, consumers marveled at the powerful artificial intelligence technology—and so did major venture capitalists. At a time when venture firms were struggling to deploy capital amid a market downturn, A.I. offered a dazzling new opportunity.
While generalist VCs, who invest across all sectors, quickly pounced on A.I., those who manage crypto-focused funds have had to tread more carefully. In the case of Paradigm, started by Coinbase cofounder Fred Ehrsam and former Sequoia Capital partner Matt Huang, the firm’s recent interest in A.I.—and lack of communication about its intentions—has ruffled the feathers of some of its investors and portfolio company founders.
