Andreessen Horowitz has closed a $1.1 billion fund dedicated to artificial intelligence infrastructure, the firm said on Friday.
The Machine Age Fund will target investments in AI compute infrastructure, including semiconductors, memory, networking and storage, as well as data centers, robotics and connected home appliances. The fund’s focus reflects accelerating demand for specialized hardware to support AI workloads.
The firm highlighted rapid advancements in AI hardware, noting compute density has increased 28-fold from an H100 rack to a Rubin rack. Power requirements per rack have risen from roughly 5–10 kilowatts to 100–250 kilowatts to accommodate current systems, with projections indicating further increases to 1 megawatt within three years.
Andreessen Horowitz also cited a shift in venture deal flow, with hardware startups now accounting for more than 20% of its pipeline, up from a minimal share in prior years.
The firm has previously backed AI hardware companies including Unconventional AI, Nexthop, Volta, Atoms, Heron Power and Mind Robotics. Its historical investments span autonomous systems, aerospace and robotics, with early-stage support for companies such as Skydio in 2016, SpaceX, Anduril in 2019 and Waymo in 2020.
