Andreessen Horowitz has secured $1.1 billion for its latest fund dedicated to AI infrastructure, marking a strategic shift toward the hardware and compute layers underpinning artificial intelligence systems.
The Machine Age Fund will target startups in semiconductors, memory, networking, storage, data centers, robotics and home appliances, reflecting the growing capital intensity of AI workloads. The firm noted that hardware-related deals now represent more than 20% of its investment pipeline, up from a small share in prior years.
Compute density has expanded 28-fold in recent generations, from an H100 rack to a Rubin rack, while rack power requirements have jumped from roughly 5–10 kilowatts to 100–250 kilowatts to support current AI systems. Andreessen Horowitz expects rack power capacity to reach 1 megawatt within the next three years as models grow larger and more energy-intensive.
The fund’s launch follows a series of early-stage investments by Andreessen Horowitz in AI-enabling companies. In 2016, the firm led Skydio’s Series A and invested in SpaceX. It made its first investment in Anduril in 2019 and participated in Waymo’s funding round in 2020. The portfolio also includes Unconventional AI, Nexthop, Volta, Atoms, Heron Power and Mind Robotics.
Andreessen Horowitz has historically backed companies across the AI stack, from infrastructure to applications, but the new fund signals a focused bet on the physical and operational backbone required to scale generative AI globally.
