Andreessen Horowitz has closed its latest fund at $1.1 billion, earmarking the capital for startups developing artificial intelligence infrastructure, including semiconductors, memory, networking, storage and data-center hardware.
The Machine Age Fund will also invest in robotics and connected home appliances, reflecting the firm’s focus on the full stack of AI compute requirements. The announcement follows a surge in demand for specialized hardware as AI workloads expand, with compute density in racks increasing 28-fold from Nvidia’s H100 configuration to newer Rubin-class systems.
Power requirements for AI racks have climbed from roughly 5–10 kilowatts to between 100–250 kilowatts to support current generations of accelerators. Andreessen Horowitz projects that power needs will reach 1 megawatt per rack within three years as model complexity and data throughput continue to rise.
The firm said hardware-focused startups now account for more than 20% of its deal flow, up from a minimal share in prior years. Recent investments include Unconventional AI, Nexthop, Volta, Atoms, Heron Power and Mind Robotics, alongside earlier bets such as Skydio in 2016, SpaceX, Anduril in 2019 and Waymo in 2020.
Andreessen Horowitz did not disclose a target ownership stake or sector allocation for the new fund.
